Next Support Levels for DOT If Bulls Fail to Break $7.5: Polkadot Price Analysis
polkadot struggled to reclaim the critical $7.5 resistance zone and the 100-day moving average at $7.4.
However, the current bullish momentum appears insufficient, suggesting that short-term consolidation near this important level is possible.
By Shayan
Daily Chart
A detailed examination of Polkadot’s daily chart reveals that the asset is trending upward following a revival in demand near the $6.5 support level. This move brought DOT into a critical resistance zone defined by the 100-day moving average and the static level at $7.5. Breaking out of this key price range could attract more demand, leading to a sustained upward move.
However, current price action around $7.5 suggests that bullish momentum is waning. Buyers are facing significant challenges pushing the price beyond this resistance. Therefore, a horizontal consolidation or slight rejections are likely before the next decisive move. In this scenario, the primary support in the medium term would be the $6.4 level.
4-Hour Chart
On the 4-hour chart, the decline of bullish momentum is clearly visible as a key resistance zone was reached and the price failed to break through the previous high. This critical resistance range is bounded by the Fibonacci levels of 0.5 ($7,415) and 0.618 ($7,821). However, the formation of a potential double top formation near this resistance indicates a possible rejection of the parity in the short term.
If buyers overcome the serious resistance at $7.8, the next target will be the upper limit of the wedge in the medium term. Conversely, a rejection at this level could lead to another downside move targeting the lower boundary of the wedge. A definitive breakout from this wedge pattern will be required to determine Polkadot’s future direction.
Sentiment Analysis
By Shayan
Polkadot’s price showed signs of waning bullish momentum and failed to break the previous high of $7.7. Since futures market movement significantly affects price movements, analyzing futures market sentiment is vital to determine whether this upward trend will continue.
This chart presents Polkadot’s daily price movements, as well as its funding rate and open interest measurements. Despite the recent upward movement, open interest and funding rates have remained close to their lowest levels and have not increased significantly. This indicates a lack of strong bullish momentum and raises the possibility of a consolidation correction.
This indicates that market participants have not significantly increased their long positions and there is a lack of confidence in the continuation of the uptrend. Given dormant funding rates and low open interest, the likelihood of a consolidation correction increases.
This means Polkadot could enter a period of sideways movement or slight decline before determining its next direction. However, increasing open interest and funding rates may signal a new upward momentum. An increase in these metrics may indicate that investors are gaining confidence and entering into more aggressive long positions, potentially solidifying the uptrend.
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