With the onset of the bear market, many brief sellers have been attempting to make a fast buck and are on the lookout for a coin or a token to wager towards.
Whereas betting towards ETH and ADA will not be the very best thought due to the upcoming Merge and hardforks, Polkadot does appear to be the proper match.
Polkadot could also be a secure wager in terms of shorting a cryptocurrency, as issues haven’t been wanting so good for Gavin Wooden’s coin in the meanwhile.
One of many causes for the DOT’s darkish future might be its total sentiment on social media. Despite the fact that there have been comparable ranges of constructive and unfavorable sentiment for Polkadot, the social quantity has fallen off drastically after 19 August.
Thus, implying that the crypto group doesn’t appear to be that enthusiastic about discussing Polkadot and its future. The drop within the social media quantity may point out that the crypto group might have turn into detached towards DOT and this might be perceived as a bearish signal.
Supply: Santiment
The dangerous information doesn’t finish there, nevertheless, Polkadot has additionally seen a major dip in its transaction quantity since June. And, it looks like fewer persons are making transactions on this protocol.
Supply: Messari
Together with that, Polkadot’s market cap dominance has additionally taken a success. In March, Polkadot accounted for 1.18% of the entire crypto circulating available in the market. Nevertheless it has now gone all the way down to 0.81%. And, there’s a chance that it could go down additional.
The worth has echoed the sentiment of the individuals as DOT has been happening a bearish run for fairly a while.
After testing the $9.59 resistance degree, the worth has gone fully south. At press time, it was testing the $6.85 help degree.
There’s a chance that the worth will check the $6.23 help degree once more and there could also be an opportunity for brief goers to e-book a revenue in case this occasion culminates.
The RSI, at press time, was at 36.74. Thereby, indicating that momentum is on the sellers’ aspect. The CMF was additionally beneath zero which might be perceived as a bearish sign.
Supply: TradingView
Effectively, issues are wanting unfavorable for DOT in the meanwhile. However the tide might flip within the token’s favor sooner or later. DOT has a excessive correlation of 0.83 with ETH. With the upcoming Merge, If ETH registers a spike in its costs, there’s a chance that DOT will too.
