- Huobi Exchange has revealed that it has been experiencing healthy demand in the futures market for Polkadot.
- The exchange’s sentiments could indicate a potential pivot for a northbound move in the altcoin.
- DOT could have a bullish week amid multiple positive indicators.
Polkadot price (DOT) could have a bullish week, a thought extrapolated from a recent tweet by Huobi exchange about experiencing healthy demand in the futures market for Polkadot. Notably, the futures segment of the cryptocurrency market often moves simultaneously with the spot market. Moreover, in certain occurrences, it significantly influences general pricing. Judging from this, it is possible that Polkadot’s ticker, DOT, could record a demand uptick this week, hence increasing prices.
Polkadot changes the bearish tide in the futures market
The futures market began the week on the wrong foot as the largest cryptocurrency exchange by trading volume, Binance, experienced downtime in its futures segment early morning on April 10. Nevertheless, industry peer Huobi Exchange revealed that it has been witnessing a healthy demand in the futures market for Polkadot.
#Huobi Top Trader Long Positions:
— Huobi Futures (@HuobiFutures_) April 10, 2023
$HT 71%
$DOT 70%
#Bitcoin 64%
$ARB 62%
$ETH 55%
What's your next long?
Based on the Twitter post, DOT is now second in Huobi’s top trader position. This came after the altcoin outperformed Bitcoin (BTC) and Ethereum (ETH) on metrics of futures demand. The ranking is achieved after factoring in the ratio of longs to shots that each asset holder executed.
The surge could hint at a possible demand pivot, given that Polkadot’s open interest in the Huobi exchange has been on a downtrend since March 22. This surge showed signs of providing a pivot over the last 24 hours after Polkadot price retested the March 11 lows.
Polkadot price finds support at $6.10
Polkadot price, at the time of writing, is at $6.29 after gaining almost 1% in the last 24 hours. The altcoin was rejected from the $6.45 resistance and found some bullish relief after the support at $6.10 held.
DOT/USDT 1-day chart
Given Polkadot’s ranking in the derivatives market on metrics of long positions vs. shorts, it is deducible that bullish demand could grow as the week progresses.
In the same way, the Polkadot price action showed that the sell wall could hint at a possible bullish pivot as demand slowly but effectively outweighs selling pressure.
If Polkadot price successfully secures enough volume, investors can expect at least a 6% upside this week.
Polkadot volume and network development
On matters of volume, Polkadot’s on-chain volume has been plummeting for three consecutive weeks and is currently standing near the monthly lows. Nevertheless, things could change soon as the consensus sentiment changes the tide.
The sentiment metric is up significantly over the past 10 days, indicating more investors expecting a bullish turn of events. Nevertheless, while the sentiment could lead to bullish volumes, the volume metric remains at its lowest since the last month.
On the upside, Polkadot has maintained healthy development activity since mid-March. Notably, the network has been performing well among other leading blockchains, boasting the highest development activity for a while now.
This network development could also be a confidence pump among DOT community members and investors.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Cardano breaks above descending trendline, eyes April high as bullish momentum builds
Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.