Polkadot's mainnet asset, DOT, has been experiencing a significant price movement after failing to surpass its 200-day moving average. The altcoin's price has approached the lower boundary of its trading range around $6, sparking uncertainty among investors.

DOT has been consolidating between key resistance at $7.5 and critical support at $6. A downward momentum could emerge if sellers push the price below the support level. Conversely, an upward recovery towards the upper boundary with increasing demand could lead to a strong bullish trend.

A closer look at the 4-hour time frame reveals a sharp decline towards the lower boundary of the rising wedge formation. DOT is on the verge of falling below this critical demand zone, indicating potential new downward momentum. However, there is still room for demand to increase around this key level, potentially leading to a rise towards the upper trend line.

The futures market sentiment also holds crucial insights into Polkadot's future potential. The significant decrease in open interest and funding rates during the consolidation period suggests a suitable point for aggressive positioning. An increase in demand and long positions could signal the beginning of a bullish trend, while a return to previous short positions could lead to a gradual decline.

Overall, the pullback from $7.4 marks a critical point for DOT. Investors are closely monitoring futures market sentiment and key levels to gauge the potential direction of the next significant move in the altcoin's price.