• DOT has been consolidating since 13 March and trading within the $5.8 – $6.6 range for the past four weeks.
• The funding rate turned negative, indicating a bearish sentiment in the market.
• Over $160k in liquidations of long positions than short positions (at $8.2k) has been observed, showing a bearish outlook that could likely set DOT to retest its lower boundary of $5.8 soon.
Polkadot’s [DOT] Price Analysis
Polkadot [DOT] has been consolidating since 13 March, with its price action trading within the range of $5.8 -$6.6 over the past four weeks.
Funding Rate Flips Negative
The funding rate has flipped into negative, which shows a bearish sentiment in the market. In addition, development activity dipped after peaking on 22 March, which could weigh down investors‘ confidence and reduce DOT’s value.
Liquidations of Long Positions Outweigh Short Positions
With more than $160k in liquidations of long positions than short positions ($8.2k), it indicates that a bearish outlook is likely to set DOT to retest its lower boundary of $5.8 soon.
What To Expect?
Sellers could gain more leverage and push DOT to test the range’s lower boundary at $5.6 or retest previous support at $5.27 if the sideways market structure persists. Conversely, if Bitcoin reclaims the level at $28K and surges afterwards, then DOT might aim for range’s upper boundary at around 6$. For bulls to make any dent in bearish sentiment they must move above mid-range level of 6$.
Though investors may seek gains at either boundaries of DOT’s trading range, there is an apparent downward pressure due to negative funding rate and higher liquidation of long positions than shorts.