Opinion: Polkadot may face a test of important support levels and may fall to $5.1

According to CryptoPotato, analyst Shayan’s analysis shows that Polkadot has been in a long-term consolidation phase, oscillating around the 200-day moving average and the key level of $6.3, full of uncertainty about its future trend. A breakout of this key support area could lead to a drop to the $5.1 threshold. The daily chart shows that prices have formed a rising wedge pattern, a well-known bear market continuation pattern that suggests the market may be dominated by sellers. If sellers manage to break through the lower border of the wedge, the likelihood of a sharp decline towards the key $5.1 support is very high. Conversely, if there is a sudden bullish turn, buyers may target the important 100-day moving average, currently around $8.1, in the medium term. On the 4-hour chart, Polkadot’s recent decline found support at the key $6 area, triggering a significant bullish reversal. However, after a period of gains, the price once again encountered key resistance zones defined by the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels. This area comes with a lot of selling pressure that could lead to another bear market rejection. However, Polkadot’s price is still trading within a key range between the $6 support zone and the key resistance at $7.4. Price action within this range is the primary reference point for predicting the future direction of this cryptocurrency. However, a sudden break above the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels could signal a bullish recovery in the medium term.