Polkadot (DOT) continues its sideways consolidation phase, with its price confined between the significant resistance region of $7.4 and the crucial support zone of $6.4. A valid breakout from this range is crucial for determining DOT’s future trajectory. Recently, DOT found support near the lower boundary of this range and rebounded significantly, reaching the upper threshold. If buyers can push the price above the $7.4 resistance and the 200-day MA, a sustained bullish trend could follow.

In the 4-hour timeframe, Polkadot fluctuated within an ascending wedge pattern for an extended period. If buyers manage to breach the resistance, the next target will be the wedge’s upper boundary in the mid-term. A valid breakout from this pattern is required to determine the price’s upcoming direction.

Amid uncertainty surrounding Polkadot’s price trajectory, it is crucial for market participants to analyze futures market sentiment to assess the cryptocurrency’s future potential. A significant amount of liquidity has formed above the range’s high of $7.5, consisting of numerous buy-stop orders. Polkadot buyers may target this potential level of liquidity in the short term, possibly triggering a notable short-squeeze event. However, closely examining the price action around this crucial juncture is essential for determining the cryptocurrency’s forthcoming direction.