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DOT Dropped To $0.20 After Flash Crash On Binance Margined Futures

DOTUSD

DOT Dropped To $0.20 after a major flash crash on the Binance Futures coin-margined perpetual contracts as we read more in our latest altcoin news today.

Polkadot’s DOT dropped to $0.20 due to a major flash crash on the Binance Coin margined futures platform which saw the price crash. Over the past couple of days, we saw how challenging the market was with the entire capitalization seeing $150 billion being wiped off.  The developments followed Wall Street’s slump as legacy markets suffer over the entire week with Bitcoin’s realized correlation with the S&P 500 stands at a 5-month high which reflects on the market.

DOTUSD, COIN-M Perpetual, Binance. Source Binance

One thing that was the most interesting took place on the Binance derivatives platform – Binance Futures. The DOT/USD quarterly perpetual futures contracts on the platform margined section of Binance Futures went through a huge flash crash, as the charts show. The price dropped from $33.862 to $0.20 in a few moments. Aaron Gong who is the head of Binance Futures said:

 “A user who held a large position put a single-stop market order in the market which triggered this needle. It didn’t affect any other users positions as we are using mark price for liquidations. We will add more controls of stop market order size limits to prevent similar recurrence.”

Looking at the chart of the 1-minute candle pattern shows that the entire thing took no more than 60 seconds and this is not the first time that something like this happened. Last year, Bitcoin’s price flash crashed on Bitstamp.

DOT price
Polkadot’s DOT 24-hour Price Chart (Source: Coingecko)

As reported three days ago, DOT Steadied above $35 after it corrected from the $42 zone, remaining stable above $30 against the US dollar. DOT steadied and is holding ground above $30 and $35 against the US dollar with the price trading nicely above the $35 support and the 100 simple moving average. There was also a break above the crucial bearish trend line with the resistance near the $34.50 on the 4-hour charts of the pair which remains in a strong uptrend and will revisit $42.00. After finding more offers near $42, DOT started a downside correction with a break below the $35 and $32 levels with the price spiking below the $30,00 support level as the bulls remained in action.

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