Polkadot’s 35% rally meets a 9% flush – Rebound or leverage reset?

Polkadot [DOT] fell 9.85% at press time, reversing part of its 35% seven-day gain.

Price remained bearish, but exchange flows and derivatives positioning began moving in the opposite direction. The split raised a sharper question. Was DOT losing demand or merely clearing leverage before another move?

Several indicators supported a rebound, though Liquidation data kept the downside risk alive.

Will Polkadot rebound after Funding Rates flip?

Polkadot’s Funding Rate began falling on the 10th of September before entering negative territory. By midday on the 11th of September, the Funding Rate had reached -0.0033%.

The negative reading showed that short positioning became more aggressive as DOT declined.

However, the Funding Rate later turned positive and reached 0.0037%.

Positive Funding Rates meant longs were paying shorts, suggesting that leveraged positioning had shifted toward buyers. Price had yet to reflect that change.

Long Liquidations reached $892,620 over 24 hours, compared with $53,930 in Short Liquidations. That imbalance showed that the recent decline still punished leveraged buyers. The Funding Rate recovery created room for a rebound, though price confirmation remained absent.

Are spot outflows supporting DOT?

Spot market flows offered another bullish signal.

DOT recorded a negative Spot Netflow of $1.13 million over 24 hours, according to CoinGlass. Total outflows reached approximately $14.33 million during the same period.

Across seven days, DOT recorded approximately $7.09 million in net outflows. Negative Spot Netflow can reduce immediately available exchange supply, though withdrawals do not prove long-term holding.

Even so, the multi-day pattern showed persistent withdrawals as DOT’s price corrected. Derivatives positioning improved as spot tokens continued leaving exchanges. Both signals were now moving against the prevailing price trend.

Could DOT fall toward $1.01?

The available indicators supported a possible rebound, but they did not confirm that DOT was undervalued. They also could not prove that the decline represented a deliberate stop hunt.

The three-day Liquidation Heatmap showed an unfilled liquidity cluster near $1.01, below the prevailing price.

The cluster represented estimated liquidation concentration. It did not confirm waiting buy orders.

At the same time, larger unfilled clusters remained above DOT’s price. Those areas could attract price if demand strengthens and the Funding Rate remains positive.

DOT’s rebound case now depends on avoiding $1.01 and moving toward the overhead liquidity clusters.

Positioning has changed before price. The next move will reveal whether that gap closes through recovery or renewed liquidation.

Final Summary

• Polkadot’s Funding Rate flipped positive as Long Liquidations reached $892,620.
• DOT recorded $1.13 million in negative Spot Netflow, though $1.01 remained a downside risk.