📉 Is the Polkadot Party Losing Steam?
While
$DOT has been putting on a clinic with that 6.38% surge, the cracks are starting to show beneath the surface. It looks great on paper, but the "under the hood" metrics are flashing yellow lights for the bulls.
🔍 The Evidence for a Pullback
• The Ghost Town Divergence: We just saw price push toward 2.226, but the volume tells a different story. Dropping from 11.2M to a mere 167k on the 1H candles is a textbook bearish divergence. The price is climbing, but the "fuel" (buyers) is running dry.
• Follow the Smart Money: While retail might be chasing the pump, the institutions seem to be hitting the exit. With -$3.59M in net contract outflows and spot markets bleeding nearly a million in the last hour, the "Big Fish" are cashing out into this strength.
• Overextended: On the 1H timeframe, we are deep into overbought territory. Pushing higher without a healthy correction is becoming a "low probability" play.
🎯 The Game Plan: Fading the Move
I’m looking to play the reversal here. If the momentum stalls, we could see a quick slide back to reality.
• Aggressive Entry: $2.215 – $2.225 (Current resistance cluster)
• Conservative Entry: Wait for a rejection/wick at $2.252 with a bearish 1H close.
• Safety Net (SL): $2.287 (Keeping it strictly above the overhead resistance zone).
• Profit Targets: * TP1: $2.096 (Key support)
• TP2: $2.005 (Psychological floor)
⚡ The Bottom Line
The trend is technically bullish, but I’d rather "sell the exhaustion" than "buy the peak." When volume fades while price rises, the elevator usually goes down faster than it went up.
What’s your move? Are you riding the DOT momentum until the wheels fall off, or are you joining me on the short side to catch the correction? Let’s talk levels in the comments! 👇
#Polkadot #DOT #CryptoTrading #TechnicalAnalysis #Write2Earn $SUI $XRP