Where Will DOT Go After Losing the $6 Level?
Polkadot‘s price showed a slight reversal, accompanied by a small uptrend towards the previously breached lower trend line of the triangle formation.
However, if the pullback to this broken trend line is successful, the downtrend is likely to continue.
Technical analysis
By Shayan
Daily Chart
A closer look at polkadot‘s daily chart shows that there has been a slight reversal in price, followed by a small uptrend towards the lower trend line of the multi-month triangle that was previously breached. This rise is attributed to increased demand and decreasing bearish momentum around $5.4. The asset now aims to complete the pullback to this broken trend line.
If the pullback is successful and the bearish momentum continues, Polkadot will likely resume its initial downtrend, with the next target being around the critical $5 support range. But in the broader context, the price remains confined within a critical range bounded by the $6 resistance and $5 support, awaiting a valid breakout to determine the next major move.
4-Hour Chart
Polkadot’s price action on the 4-hour chart points to a potential bullish revival marked by a notable rise following multiple supports at the critical $5.4 threshold. This rise resulted in a break above the short-term descending price channel, indicating a temporary upward retracement phase. The price is currently oscillating in a decisive range defined by the critical resistance at $6.2 and the crucial support at $5.5.
Considering the current price action and the apparent bullish divergence between the price and the RSI indicator on the 4-hour time frame, Polkadot could target the upper end of the range at $6.2 in the short term. Price action at this level will be crucial in determining the upcoming course of the cryptocurrency.
Sentiment Analysis
By Shayan
Polkadot has seen a surge in demand recently and is approaching the previously broken $6 level. Evaluating supply near this important mark is crucial to making informed trading decisions.
The accompanying chart highlights potential liquidation levels in Polkadot’s price action, providing valuable insight into smart money focus areas in the medium term. Significant liquidity is positioned above the critical $6 resistance zone, which lines up with the lower boundary of the triangle.
This area is likely to act as strong resistance confirming a pullback. Therefore, if sellers beat buyers around this axis as expected, the price could start a new downtrend in the medium term.
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Cryptocurrency charts from TradingView.
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