Here Are Next Support Levels For DOT If Bulls Fail To Break Above $7.5 – Polkadot Price Analysis

Polkadot has struggled to regain the critical resistance region of $7.5 and the 100-day moving average at $7.4.

However, current bullish momentum appears insufficient, suggesting a possible near-term consolidation near this pivotal level.

By Shayan

The daily chart

A close examination of Polkadot’s daily chart reveals that after a resurgence in demand near the $6.5 support level, the asset experienced a bullish surge. This move took the DOT to a critical resistance zone defined by the 100-day moving average and the static level at $7.5. A break out of this key price range could attract more demand, resulting in a sustained bullish move.

However, current price action around $7.50 indicates fading bullish momentum. Buyers face significant challenges pushing the price past this resistance. Therefore, a sideways consolidation or slight rejections are likely before the next decisive move. In this scenario, the $6.4 level will be the main medium-term support.

The 4 hour chart

On the 4-hour chart, the decline in bullish momentum is evident by reaching a significant resistance zone, with the price not breaching its previous swing. This critical resistance range is bounded by Fibonacci levels 0.5 ($7.415) and 0.618 ($7.821). However, forming a potential double top pattern near this resistance suggests a possible near-term rejection.

If buyers break through substantial resistance at $7.8, the next target would be the upper boundary of the mid-term wedge. Conversely, a rejection at this level could lead to another downward move, heading for the lower boundary of the wedge. A decisive breakout of this wedge pattern will be necessary to determine Polkadot’s future direction.

sentiment analysis

By Shayan

Polkadot’s price has shown signs of waning bullish momentum, failing to break the previous high of $7.7. Futures market sentiment analysis is crucial to determining whether this bullish trend will continue, as futures market activity significantly influences price movements.

This chart presents the funding rate and open interest metrics along with Polkadot’s daily price movements. Despite the recent upward movement, open and funding rates have remained close to their lowest levels, showing no significant increase. This indicates a lack of strong bullish momentum and raises the possibility of a consolidation correction.

This suggests that market participants are not significantly increasing their long positions, indicating a lack of confidence in continuing the uptrend. Given latent funding rates and low open interest, the likelihood of a consolidation correction increases.

This means that Polkadot may enter a period of sideways movement or slight declines before determining its next direction. However, if open and funding rates rise, this would signal further bullish momentum. An increase in these metrics would indicate that traders are gaining confidence and entering more aggressive long positions, which could consolidate the bullish trend.

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