Polkadot's Price Surge Meets Reversal: Rebound or Leverage Reset?

Polkadot's recent price surge has met with a reversal of sorts. Over the past seven days, DOT had gained 35% in value, but that momentum was short-lived as it fell by 9.85% at press time.

This sudden drop raises questions about whether Polkadot is losing demand or merely clearing leverage before another move. Several indicators suggest a rebound may be on the horizon, despite Liquidation data keeping downside risk alive.

The Funding Rate, which measures the interest rate charged to holders of short positions, began falling on September 10th and turned negative by midday on the 11th. However, it later flipped positive, reaching 0.0037%, indicating that leveraged positioning had shifted towards buyers.

Long Liquidations reached $892,620 over 24 hours, compared to just $53,930 in Short Liquidations, showing that the recent decline still punished leveraged buyers. The Funding Rate recovery created room for a rebound, but price confirmation remains absent.