Polkadot gains favor among futures traders on Huobi- Why is this important
- 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.
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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.
#Huobi Top Trader Long Positions:
🔹 $HT 71%
🔹 $DOT 70%
🔹 #Bitcoin 64%
🔹 $ARB 62%
🔹 $ETH 55%
What's your next long?
— Huobi Futures (@HuobiFutures_) April 10, 2023
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 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.
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.
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.
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.