Most short sellers have tried to make quick cash as the bear market prevails, looking for an asset to bet against for swift returns. While placing bets against ADA and ETH could not be a logical idea due to the coming hard forks and Merge, Polkadot appears like the correct fit.
DOT could be a safe option for shorting crypto, as Gavin Wood’s token hasn’t seen lucrative developments. One of the reasons behind Polkadot’s gloomy future might be its overall social media sentiment.
Though the network has seen similar negative and positive bias levels, DOT’s social volume noted drastic declines after August 19. That indicates that the cryptocurrency community does not appear excited about debating Polkadot’s future. The social media volume dip might mean indifference from the crypto community, translating to a possible bearish signal.
Nevertheless, there’s more bad news, with Polkadot recording a substantial transaction volume drop since June. Also, it appears like fewer individuals are transaction on the protocol. Besides that, DOT’s market capitalization dominance took a blow. The token boasts a 1.18% market share in March. However, the figure has deteriorated to 0.81%. And it seems primed for further dips.
The price has mimicked investors’ sentiment as DOT maintained bearish runs over the past few sessions. The alternative token adopted southward tendencies since testing the resistance at $9.59. While publishing this post, DOT tested the support level at $6.85.
The price will likely retest the foothold at $6.23, and short goers could have a chance to book a profit amid such events. While writing these lines, the Relative Strength Index swayed at 36.74, suggesting bearish momentum for the altcoin. Also, the Chaikin Money Flow remained beneath zero, confirming selling superiority.
Indeed, things remain unfavorable for Polkadot at the moment. Nevertheless, tides might shift in DOT’s favor in the coming session. The alternative token shares a high 83% correlation with ETH. Ethereum’s possible price surges during the awaited Merge might see DOT soaring. It’s a matter of time before Polkadot price reveals its colors.
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