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![Polkadot [DOT]: Is it the right time for swing traders to go short](https://cryptonoiz.com/wp-content/uploads/2022/08/aaron-burden-h7wpIMY3O3E-unsplash-1000x600.jpg)
With the onset of the bear market, many brief sellers have been attempting to make a fast buck and are in search of a coin or a token to wager in opposition to.
Whereas betting in opposition to ETH and ADA will not be one of the best concept due to the upcoming Merge and hardforks, Polkadot does appear to be the appropriate match.
Polkadot could also be a secure wager relating to shorting a cryptocurrency, as issues haven’t been wanting so good for Gavin Wooden’s coin in the intervening time.
One of many causes for the DOT’s darkish future might be its total sentiment on social media. Although there have been related ranges of optimistic and adverse sentiment for Polkadot, the social quantity has fallen off drastically after 19 August.
Thus, implying that the crypto neighborhood 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 neighborhood could have turn out to be detached towards DOT and this might be perceived as a bearish signal.
Supply: Santiment
The unhealthy information doesn’t finish there, nevertheless, Polkadot has additionally seen a big dip in its transaction quantity since June. And, it looks like fewer individuals 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 out there. However 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 utterly 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 guide 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 intervening 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 chance that DOT will too.
