Polkadot's native cryptocurrency, DOT, experienced a significant pullback after reaching a peak of $11.64 on December 4. The price dropped by over 35% to a low of $7.5 on December 9, indicating profit-taking after a rally in November. The pullback occurred within an important Fibonacci zone, suggesting that re-accumulation by bulls may have begun. While there is expected bullish momentum, sell pressure remains strong, with significant spot outflows occurring in December. Open interest in derivatives has also dropped, and negative funding rates indicate a shift in favor of shorts. The ratio of shorts to longs on Coinglass has seen a sudden shift, with longs dominating recently. Despite the recent dip, traders see it as an opportunity for gains, but declining market sentiment could deter investors from reinvesting in DOT. However, if DOT gains favor with bulls, it could decouple from overall market sentiment and resume its surge.



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