Polkadot's price faced significant selling pressure and there was a significant decline below the critical $6 support zone. Price action suggests that the downtrend may continue in the short term, and there are no signs of recovery for now. 🔻

The daily chart shows a significant increase in sales momentum. This pulled Polkadot's price below the critical $6 support level and out of a multi-month triangle pattern. This triggered a significant long liquidation event.

On the 4-hour chart, Polkadot's price action shows a distinct downtrend and a pattern of lower highs and lower lows indicating continued seller dominance. The cryptocurrency is retreating within a bearish price channel, highlighting continued selling interest among market participants.

Polkadot has been in a strong downtrend for the last few weeks and has finally broken through the critical $6 threshold. Understanding the key drivers of this bear movement is important for traders to gauge market sentiment and predict future price movements.

These liquidity pools are positioned above the major swing high of $7.3, where the current impulsive bear trend began. This area is likely filled with buy-stop orders indicating selling activity and aggressive short positions.

These liquidity pools indicate strong bear sentiment in the market. Despite the ongoing downtrend, sellers will eventually need to realize their profits. This often leads to periods of consolidation and potential bullish corrections. 📉