Polkadot (DOT) is trading at $0.85 as of Wednesday, with market data showing a clear shift in momentum. Open interest has fallen 4% in the last 24 hours, and the MACD indicator is flat — a sign that the recent uptrend has stalled. Aggressive sellers are now overwhelming a crowded long trade, putting pressure on the token's price.
Why the Crowded Long Trade Is Under Threat
The drop in open interest suggests that traders are closing positions rather than adding new ones. When a market is heavily long and sellers step in aggressively, it often leads to a cascade of liquidations. That's exactly what DOT is facing right now. The combination of a flat MACD and declining open interest points to weakening bullish momentum. Without fresh buying interest, the path of least resistance appears lower.
What the Charts Suggest
Technical analysis indicates two possible targets: a move down to $0.75 or a recovery toward $0.95. The direction will depend on whether buyers can defend the current level. If the selling pressure continues, a break below $0.85 could open the door to $0.75. On the other hand, if the MACD turns up and open interest starts rising again, a bounce to $0.95 is possible. For now, the data leans bearish.
What to Watch Next
Traders are watching for a decisive move below $0.85 or a reversal pattern that could signal a bottom. The next few sessions will be critical. If open interest continues to fall and sellers remain in control, $0.75 becomes the likely target. But if buyers step in and the MACD crosses higher, the $0.95 level could come back into play.
