🚀 Polkadot's Price Consolidation Phase Expands, Awaiting Breakout 🚀

According to CryptoPotato, Polkadot's price has been stuck in a prolonged consolidation phase, oscillating between the significant resistance region of $7.4 and the crucial support zone of $6.4. The daily chart paints a picture of extended sideways movement, causing uncertainty among traders about Polkadot's next move. With the price hovering around the critical resistance at $7.5, a breakout above this level could signal a bullish trend, while a failure could lead to a bearish reversal towards the lower boundary.

In the shorter timeframe, Polkadot has been trading within an ascending wedge pattern, finding support near the wedge's lower boundary and facing resistance around the 0.5 Fibonacci level. A breach above this resistance could pave the way for further upside, while a failure might trigger another downward move.

Market participants are closely monitoring the futures market sentiment, particularly the liquidation heatmap, which indicates significant liquidity above the range's high of $7.5. This concentration of buy-stop orders could lead to a short-squeeze event if triggered, potentially driving the price higher. However, traders should remain vigilant as a fake breakout could manipulate the market.

In conclusion, the coming days are crucial for Polkadot, as traders await a decisive breakout to determine the cryptocurrency's short-term trajectory. Stay tuned for updates as the price action unfolds. 📈💥 #Polkadot

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