Polkadot Price Reverses as Funding Rate Turns Positive

Polkadot's recent price action has been marked by a 35% rally followed by a 9.85% decline, raising questions about whether this is a rebound or a leveraged reset.

The data suggests that exchange flows and derivatives positioning have begun to shift in favor of buyers, with the Funding Rate turning positive on September 11th after entering negative territory earlier that day.

However, long liquidations reached $892,620 over 24 hours, compared with $53,930 in short liquidations, indicating that leveraged buyers are still being punished.

The spot market flows also offered a bullish signal, with a negative Spot Netflow of $1.13 million over 24 hours and approximately $14.33 million in total outflows during the same period.