DOT funding rates fell, meaning short traders took over the market. The price of DOT continued to fall for a month

Weekend trading began with Polkadot’s falling significantly [DOT] financing rates. This indicated that several short positions have been opened, according to data from Santiment.

Read Polka Dots [DOT] Price Forecast 2023-24

According to the on-chain analytics platform, DOT was pegged at -0.000213 at the time of writing. It is important to note that increased short positions often lead to an increase in the value of an asset. This left most short traders in a severely liquidated position.

According to Coinglass data, liquidations in the cryptocurrency market have totaled $18.53 million in the past 24 hours, with 6,720 traders liquidated. DOT liquidations of $264,000 accounted for 1.5% of total amounts withdrawn from the market.

Source: Coinglass

Just in case you short circuit Polkadot…

At the time of writing, DOT was trading at $5.28. The price is down 2.33% in the last 24 hours. Trading volume also dropped 10% over the same period, according to data from CoinMarketCap.

According to a daily review of the chart, DOT’s buying pressure has steadily eased since Nov. 3. The price of the alt is down 5% in the past seven days. A closer look at the alt’s performance revealed that DOT’s distribution has gradually increased since the collapse of FTX. Since then, DOT’s price has dropped 26%.

Increased DOT distribution gave sellers control of the market as of this writing. The position of DOT’s Directional Movement Index (DMI) confirmed this. A look at the DMI revealed that the strength of the sellers (red) at 19.56 sat firmly above the buyers (green) at 16.21.

Similarly, key momentum indicators were pointing south at the time of writing, indicating further easing of buying pressure. DOT’s Relative Strength Index (RSI) remained below the 50 neutral spot in a downward trend at 42.34. Similarly, the Money Flow Index (MFI) was pegged at 48.38 at the time of writing, also in a downward trend.

While the price of DOT fell, an On-Balance-Volume (OBV) reading showed a similar decline. When the price of a cryptocurrency asset and its OBV make lower peaks and troughs, the price decline will usually continue. At the time of writing, DOT’s OBV was -74.703 million.

Source: TradingView

On the chain…

Polkadot’s development activity continued to climb, placing it above Solana and Cardano in terms of sub-ecosystems, repos, and weekly developer commitments.

Over the past month, Polkadot’s development activity grew 5%.

Source: Sentiment

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