Polkadot’s native token DOT is currently retesting a critical price support zone between $3.44 and $3.53. This technical level aligns with Fibonacci retracement markers and is viewed by analysts as a potential springboard for bullish momentum, targeting the $4.00 psychological level and the more robust $4.46 resistance.
Market indicators offer mixed but largely resilient signals. Polkadot’s market capitalization remains stable at approximately $5.78 billion, supported by a circulating supply of 1.6 billion DOT tokens, suggesting no immediate inflation concerns.
Derivatives market activity shows a nuanced picture. While open interest, reflecting active trader positions, increased by 2.76% to $426.11 million, signaling sustained market engagement, derivatives trading volume witnessed a significant decline of 41.22% to $352.54 million. Trader sentiment also appears selective; the overall long/short ratio is slightly below 1 at 0.9712, indicating caution, although Binance traders exhibit a stronger long bias with a ratio of 3.4543.
The market demonstrated resilience despite recent liquidations totaling $386.75K over a 24-hour period, predominantly impacting long positions ($370.86K). Active buying and selling pressure continues, pointing towards an ongoing struggle between bulls and bears near the identified support zone.