After watching polo lending market, the last two days, my interpretation is that these sells are mostly margin based, has someone else observed it, or even more insight?
That can be the cause. Since Dash can be margin-traded it is profitable in both directions for traders. And it seems to be easier to cause a long downtrend than a rise now. Especially when there is no demand.
But also I don't get the purpose of the sell wall at 0.015. It's obvious price won't go there anytime soon. Then why doesn't he move it lower or sell into buy orders? All the support walls were either dumped into or mostly moved to 0.006 or pulled.
Unfortunately our market is heavily manipulated. That sell wall at 0.015 is almost certainly fake, meaning it would vanish as soon as someone bought into it. The way margin selling (short selling) works is that I can put $100,000 in BTC on Poloniex and then open a margin sell order for $250,000 worth of any crypto that is margin tradeable, including Dash. I can, of course, pull the sell order any time I want to. What does this mean? The person who put out that sell wall at .015 probably doesn't even own one single Dash! (This wouldn't effect lending rates either, since technically no part of that order has been filled, so no Dash has actually been borrowed.)
We also had a massive, almost 50k buywall at 0.013 that got partially bought into and then pulled back to the .009 - .01 area. Then it got cut in half and pulled back to the .006 area. What that means is somebody is trying to make the market *think* that a "floor" has been set. In reality, those orders keep getting pulled every time the price comes anywhere close, so they are also obviously fake. (The wall at .013 may have been intended as "real," but was heavily bought into when BTC rose above $600.) Unfortunately, when traders see massive "support" walls pulled, they assume that somebody is trying to artificially boost the price, which damages confidence.
Really? I lend on polo but did not know this. So the lending doesn't actually happen until the borrower has actually sold the borrowed coins? If that's the case, that makes for some very easy price manipulation with very little risk to the manipulator.
I'm 90% sure, but maybe somebody could confirm? Don't have access to any funds right now to test (at work).
My understanding is that I can create a limit margin sell order at 0.015, and since the price is not yet 0.015, the order will be entered but there will no Dash borrowed since there is no Dash sold. I could be wrong though...
you are wrong. those Dash have to be lent at the moment you put them into the orderbook.
