With the onset of the bear market, many quick sellers have been attempting to make a fast buck and are on the lookout for a coin or a token to guess in opposition to.
Whereas betting in opposition to ETH and ADA will not be one of the best thought due to the upcoming Merge and hardforks, Polkadot does look like the proper match.
Polkadot could also be a protected guess in terms of shorting a cryptocurrency, as issues haven’t been wanting so good for Gavin Wooden’s coin in the mean time.
One of many causes for the DOT’s darkish future might be its general sentiment on social media. Although there have been related ranges of constructive and adverse 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 might point out that the crypto group could have turn out to be detached towards DOT and this might be perceived as a bearish signal.
The dangerous information doesn’t finish there, nonetheless, Polkadot has additionally seen a major dip in its transaction quantity since June. And, it looks as if fewer persons are making transactions on this protocol.
Together with that, Polkadot’s market cap dominance has additionally taken successful. In March, Polkadot accounted for 1.18% of the entire crypto circulating out there. However it has now gone all the way down to 0.81%. And, there’s a risk that it could go down additional.
The worth has echoed the sentiment of the folks as DOT has been occurring a bearish run for fairly a while.
After testing the $9.59 resistance degree, the worth has gone utterly south. At press time, it was testing the $6.85 help degree.
There’s a risk that the worth will take a look at 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 under zero which might be perceived as a bearish sign.
Properly, issues are wanting unfavorable for DOT in the mean time. However the tide could 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 risk that DOT will too.