Polkadot's Price Surge Met with Strong Selling Pressure

Polkadot's price surged by 11.35% over the past 24 hours due to its dotUSD proposal gaining significant traction, according to a recent update from cryptonews.net.

The proposal aims to introduce a native decentralized stablecoin for Polkadot protocol, which will serve as a key stable-value instrument. The initiative also includes providing $5 million in initial liquidity for a $DOT-dotUSD pool on the Polkadot Asset Hub and allocating $2.5 million in USDT for minting, as well as another $2.5 million in $DOT.

However, despite this catalyst supporting demand, Polkadot's price faced strong selling pressure from futures traders and long liquidations, which intensified further after the token's rejection at the $1.282 resistance zone. Approximately $305.57K in long liquidations were recorded against only $42.38K in shorts.

The derivatives-driven selling narrative behind Polkadot's retracement is reinforced by the combined pressure of the liquidation imbalance and Futures Taker CVD. Furthermore, this leverage pressure coincided closely with the emerging exhaustion indicator across the technical price structure.