Polkadot's Price Surge Fades Amid Futures Selling Pressure
Polkadot (DOT) gained 11.35% in 24 hours as its dotUSD proposal advanced, receiving 97.5% governance approval and fueling price recovery.
The proposal aims to create a native decentralized stablecoin for the Polkadot protocol, serving as a key stable-value instrument, with $5 million in initial liquidity for a DOT-dotUSD pool on the Polkadot Asset Hub.
However, futures selling and long liquidations increased pressure as DOT retraced from resistance at $1.282, with approximately $305.57K in long liquidations against only $42.38K in shorts.
The derivatives-driven selling narrative behind DOT's retracement is supported by the combined liquidation imbalance and Futures Taker CVD, with leverage pressure coinciding closely with emerging exhaustion indicator across technical price structure.