Polkadot faces a significant challenge in reclaiming a decisive resistance region encompassing the .5 mark, the 100-day moving average, and critical Fibonacci levels. This resistance range can potentially halt upward pressure in the short term. Technical Analysis By Shayan The Daily Chart A comprehensive daily chart analysis highlights Polkadot’s prolonged struggle to breach a crucial resistance zone over several weeks. This resistance includes: The static resistance level at .5 The 100-day moving average at .6 The price range between the 0.5 (.4) and 0.618 (.8) Fibonacci levels This formidable range is likely accompanied by significant supply and selling pressure, capable of resisting buyers’ upward momentum. In the event of a rejection, the consolidation phase
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Polkadot faces a significant challenge in reclaiming a decisive resistance region encompassing the $7.5 mark, the 100-day moving average, and critical Fibonacci levels. This resistance range can potentially halt upward pressure in the short term.
Technical Analysis
By Shayan
The Daily Chart
A comprehensive daily chart analysis highlights Polkadot’s prolonged struggle to breach a crucial resistance zone over several weeks. This resistance includes:
- The static resistance level at $7.5
- The 100-day moving average at $7.6
- The price range between the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels
This formidable range is likely accompanied by significant supply and selling pressure, capable of resisting buyers’ upward momentum. In the event of a rejection, the consolidation phase is expected to expand, with the price retracing slightly towards the $6.5 support region.
Conversely, if buyers successfully overpower sellers, a notable short-squeeze event could transpire, propelling the price impulsively toward the $8 threshold.
The 4-Hour Chart
On the 4-hour chart, Polkadot’s price has formed an ascending wedge pattern amid the recent multi-month consolidation phase. This pattern typically indicates a continuation of the initial bearish movement if breached from its lower threshold.
Following a rejection from the significant $7.5 resistance level, the price declined, reaching the pattern’s lower boundary. However, upon reaching this point, the momentum waned, leading to a period of consolidation with minimal volatility. Nonetheless, the price is on the brink of breaking below the pattern’s lower boundary. A valid breakout could trigger a cascade towards the $6.5 mark.
Conversely, continuing the current consolidation phase within the pattern is the most probable scenario, with the price aiming for the wedge’s upper boundary around $8.
Sentiment Analysis
By Shayan
Polkadot is currently experiencing sideways consolidation around the $7 mark. Examining futures market metrics, particularly the DOT/USDT Binance liquidation heatmap, provides valuable insights into potential price movements and liquidity pools.
The heatmap reveals significant liquidity below the $7 level, indicating stop-loss orders and liquidation prices. The $8 area also contains substantial liquidity, acting as a resistance level. If the price approaches this zone, it may face selling pressure from participants looking to realize profits or close positions.
Nevertheless, the $10 zone consists of substantial liquidity, potentially representing the liquidation prices of short positions that drove the initial bearish movement before the current consolidation stage.
Polkadot’s price is trapped between the $7 support and $8 resistance levels, influenced by significant liquidity pools at these zones. A breakout from this range could lead to notable price movements, with the $10 region being a potential mid-term target in case of a bullish revival.
