DOT Price is at a Critical Crossroads and Seems to Have the Potential to Fall to $6 (Polkadot Price A)
polkadot recently faced significant selling pressure in a key resistance zone spanning the 100-day moving average and the critical $7.4 level.
This resistance has led to a potential continuation of the downtrend.
Technical analysis
By Shayan
Daily Chart
A detailed examination of Polkadot’s daily chart reveals a bearish trend, with the price rejecting after a period of sideways movement around the critical $7.4 resistance level and the important 100-day moving average. Sellers appear to be dominating the market and a continuation of a downward pullback towards the $6.5 threshold looks increasingly likely.
But in a broader context, the asset remains limited in a decisive range marked by resistance at $7.4 and support at $6.5. A clear breakout from this range will likely determine the direction of a sustainable trend.
4-Hour Chart
On the 4-hour chart, Polkadot buyers failed to overcome the critical resistance zone set by the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels and faced intense selling pressure. This selling activity led to a significant rejection, starting a bearish pullback towards the lower boundary of the $7 ascending wedge.
The price is currently struggling against this important support and if the sellers manage to break below the lower boundary of the wedge, a sudden decline towards the $6 support zone is imminent.
In summary, Polkadot is at a critical juncture. Failure to sustain current support levels could lead to further declines, while a successful defense could allow for consolidation and potential recovery.
Sentiment Analysis
By Shayan
Analyzing Polkadot’s price fluctuations as well as futures market metrics can provide truly valuable information for investors. The liquidity heat map of the DOT/USDT Binance pair offers a visualization of key liquidity pools that can influence price movements, as shown in the chart.
Currently, Polkadot’s price is limited to a critical range; Resistance is around $7.4 and support is around $6.5. The heat map shows that in this range, the $6.9 and $7.2 levels contain the most significant liquidity near the current price.
Therefore, any breakout from any of these levels could trigger a series of liquidations, potentially sparking a move and leading to a breakout from the range. Such a breakout could start a sustainable trend towards a breakout.
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