According to CryptoPotato, Polkadot's market is currently in a critical position, with its price consolidating near the substantial resistance region of $7.4. This ongoing battle between buyers and sellers is indicative of an uncertain market state. The price has been hovering around a crucial resistance marked by the $7.4 level and the significant 100-day moving average. The RSI indicator has also been consolidating near the 50 threshold, signifying a balance between buyers and sellers in the market.
Market participants are expecting a short-term rejection towards the $6.5 threshold. However, an unexpected surge above this critical resistance region could trigger a massive short-squeeze, increasing bullish momentum. The 4-hour chart shows a prolonged, slight ascent, with the price forming an ascending wedge pattern. This pattern, following a steep decline, typically indicates a potential continuation of the initial bearish trend if breached from its lower boundary.
Polkadot is currently struggling with substantial resistance, bounded by the 0.5 ($7.4) and 0.618 ($7.6) Fibonacci retracement levels, failing to surpass them. Given the muted price action and lack of bullish momentum, Polkadot is expected to experience a pullback, targeting the pattern’s lower boundary.
In terms of sentiment analysis, the Long/Short Accounts Ratio has been decreasing recently, reaching a value of 3. This means that the number of individuals holding long positions is three times higher than those with short positions, while the total position value remains equal on both sides. This suggests that the long side is primarily made up of retail traders with smaller average position sizes, whereas the short side likely comprises institutional investors with larger average positions. The decline in the metric indicates a slight increase in the average position size of institutional investors on the short side. If this trend continues, it could signal growing institutional interest, potentially leading to heightened selling pressure for Polkadot.