According to CryptoPotato, analyst Shayan's analysis shows that Polkadot's recent price trend has shown smooth movement and minimal volatility, and has since quickly fallen to the $6 level. However, the cryptocurrency is now at a critical turning point, and a possible breakthrough will determine its next direction.
A deeper analysis of the daily chart reveals a period of consolidation around $6, which suggests an intense battle between buyers and sellers, hinting at a major upcoming dynamic. Despite this uncertainty, Polkadot’s price is currently supported by a strong and decisive range, anchored by the 200-day moving average at $6.93 and a key support level of the 0.618 Fibonacci level ($6.7). This strong support area is backed by a significant amount of demand, which has the potential to prevent further downward pressure, potentially pushing the price towards a significant resistance zone of around $9.
A detailed inspection of the 4-hour chart reveals a rapid decline to the $6 level, where the price encountered significant demand, leading to a minor reversal. However, the subsequent sideways consolidation phase saw minimal volatility and a lack of decisive momentum. Nonetheless, the price has formed a sideways triangle pattern, which, if broken through its upper border, would indicate a continuation of the bull trend.
Currently, DOT is on the verge of breaking out of this triangle pattern. If this happens, Polkadot is expected to maintain its upward trajectory, with potential targets located within the price range defined by the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels. Conversely, a breakout of the lower border of the triangle pattern could signal a continuation of the bearish correction towards the $6 level.
