Polkadot (DOT) has recently hit a significant support region near its previous major swing low of $6, following a substantial rejection. The price is now experiencing slight fluctuations, which may lead to increased market volatility. After a 17% drop, Polkadot’s price has settled near the $6 support zone, indicating a struggle between buyers and sellers at this critical level. The existing demand might dominate the supply in the short term, leading to a temporary period of sideways price movement.

On the 4-hour chart, Polkadot’s price experienced substantial selling pressure after breaching the lower boundary of a multi-month ascending wedge pattern. However, upon reaching the crucial $6 support region, heightened buying pressure emerged, leading to slight sideways movements. The price is currently forming a symmetrical triangle pattern, indicating a lack of clear momentum. A breakout in either direction will likely determine the next short-term move.

Despite Polkadot’s downtrend, the open interest metric, a critical indicator of futures market sentiment, has followed a similar trajectory, experiencing a substantial decrease. This suggests a cooling off of activity within the futures market. Consequently, the market appears primed for the resurgence of either long or short positions, potentially triggering a fresh and decisive market movement in either direction.