Polkadot's (DOT) price has been on a sharp decline, breaking below the bullish trendline formed since October 2023 and the 200-day moving average around $7. The market is now seemingly targeting the $4 support zone. However, the 4-hour chart shows an ascending channel pattern, which could indicate a potential bullish rebound if a breakout above the channel occurs.

Despite the bearish trend, futures market data suggests a possible short-term rebound. The Binance DOT/USDT pair's liquidation heatmap shows significant liquidity below the $6.5 level, which the price has recently dropped below. This could mean that demand has absorbed the supply, preventing further price drops. A potential liquidity pool above the $7 level could trigger a short-term pullback.

In conclusion, while the market's short-term fate heavily relies on the channel's direction, the bullish sentiment is still alive, hinting at a possible rebound.#PolkadotAnalysis #PolkadotNews #polkadotupdate $DOT $BTC