Connect with us
Active Currencies 12944
Market Cap $2,435,494,348,316.70
Bitcoin Share 50.45%
24h Market Cap Change $4.68

Polkadot gains favor among futures traders on Huobi- Why is this important

2min Read
Polkadot gains favor among futures traders on Huobi- Why is this important

Share this article



  • DOT sees a surge in demand in the futures market.
  • DOT may have a bullish week as multiple indicators flash bullish bias.

The crypto market’s futures segment often moves in tandem with the spot market and at times has a sizable impact on overall pricing. On the same note, it can be said that Polkadot’s native crypto DOT may experience a demand surge.


Is your portfolio green? Check out the Polkadot Profit Calculator


The future market just kicked off this week with a bit of a challenge as Binance experienced downtime in its futures segment in the early morning on Monday.

Nevertheless, rival exchange Huobi just revealed that it has been experiencing healthy demand in the futures market. DOT secured the second position in Huobi’s top trader position.

The coin managed to outperform Bitcoin and Ethereum in terms of futures demand. The ranking is based on the ratio of longs to shorts executed on each asset.


Could this surge underscore a potential demand pivot?  DOT’s open interest in the Huobi exchange has been on a downward trajectory since 22 March. It showed signs of pivoting in the last 24 hours after retesting the 11 March lows.

DOT open interest

Source: Huobi

DOT hits the sell wall at the $6.10 price range

DOT’s $6.18 press time price represented a 5.8% discount from last week’s peak which was followed by a mid-week pivot. However, it also experienced some bullish relief from its weekend lows after finding support near the $$6.10 price level.

DOT price action

Source: TradingView

The coin’s ranking in the derivatives market in terms of long positions vs. shorts, suggests that there is more bullish demand moving into the new week.

Similarly, the price action revealed that the sell wall may be a sign of a potential bullish pivot as demand starts to outweigh sell pressure. Investors can expect at least a 5% upside If DOT manages to secure enough volumes.


How many are 1,10,100 DOTs worth today?


Speaking of volumes, DOT’s on-chain volume has been declining for the last three weeks. So far it is still near its monthly lows, but things are looking up as the consensus sentiment improves.

The weighted sentiment metric is up substantially in the last 10 days meaning more investors anticipate a bullish outcome.

DOT volume and weighted sentiment

Source: Santiment

Although the sentiment may usher in bullish volumes, the volatility metric is still at its lowest level in the last four weeks. On the plus side of things, Polkadot maintained healthy development activity since mid-March.

DOT volatility and development activity

Source: Santiment

The network has been ranking high among the top blockchains with the highest development activity for quite some time. This may also offer a confidence boost among investors.


Share

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.