Polkadot jumps 11.35% as dotUSD proposal advances – But DOT sellers emerge

Polkadot [$DOT] climbed 11.35% over 24 hours as its dotUSD proposal gained 97.5% governance approval, adding a major catalyst to the recent price recovery.

Specifically, the proposal highlights a native decentralized stablecoin, which is designed to serve as the Polkadot protocol’s key stable-value instrument.

The initiative also proposes $5 million in initial liquidity for a $DOT-dotUSD pool on the Polkadot Asset Hub. Additionally, the treasury funds are expected to provide $2.5 million in USDT for minting and allocate another $2.5 million in $DOT.

Therefore, the structure will expand $DOT’s utility while also improving stablecoin liquidity across the protocol.

Futures sellers challenge renewed $DOT demand

After the earlier stronger market demand, $DOT’s 90-day Futures Taker CVD printed seller dominance at the time of press. This implied aggressive Futures sellers started opposing buyers as $DOT advanced toward the $1.282 zone.

Initially, the demand absorbed the supply-side pressure pushing $DOT above its previous consolidation structure.

However, the momentum changed when the $1.282 price level rejected further expansion, and eventually the price started retracing.

The taker selling activity, therefore, contrasted with the governance catalyst supporting the broader price recovery.

The derivatives’ pressure, on the other hand, intensified further as the leveraged bullish positions unwound following the rejection at $1.282.

Long liquidations amplify selling pressure

Notably, $DOT’s price rejection aligned with approximately $305.57K in long liquidations against only $42.38K in shorts.

According to CoinGlass, Binance accounted for roughly $246.29K of the long liquidations, reflecting the exchange with the most losses across tracked exchanges.

The long liquidations imply that the leveraged buyers absorbed substantially heavier losses as the token retreated away from the $1.282 supply zone. Additionally, forced long closures also strengthened the ongoing seller dominance across the futures markets.

Combined, the liquidation imbalance and Futures Taker CVD, therefore, reinforced the derivatives-driven selling narrative behind $DOT’s retracement.

Notably, this leverage pressure also coincided closely with the emerging exhaustion indicator across the technical price structure.

Is $DOT’s $1.282 rejection signaling exhaustion?

Polkadot broke above the $0.946 and $1.044 resistance levels before rallying towards the $1.282 resistance zone, where buyers failed to sustain further advance.

The rejection provided a sharp red candle towards the $1.192 level, signaling possible profit-taking after the sharp price breakout.

Notably, the price and RSI earlier formed an upward convergence, confirming stronger buying pressure as the rally unfolded. However, the RSI also retreated from 85.26 to 75.95 following the price rejection at the $1.282 zone.

However, despite the correction, the MACD indicator remained bullish, with its line holding above its signal line.

Additionally, the positive histogram has expanded, showing that the broader bullish technical structure retained some strength despite the immediate selling pressure.

Therefore, the $1.044 price level would become the key support if the retracement deepens further. Holding above this support level could revive another attempt of the $1.282 resistance, but a break below could expose the $0.946 support zone.

Final Summary

• $DOT’s dotUSD catalyst supported demand, but $1.282 triggered clear short-term exhaustion.
• Futures selling and long liquidations increased pressure as $DOT retraced from resistance.