Polkadot (DOT) has recently encountered a critical juncture, testing the $7.5 resistance level against the US Dollar. Although it has corrected its gains, the cryptocurrency may embark on a new upward trajectory if it maintains its position above the $6.75 support level. Failure to initiate a fresh increase could lead to a downward movement, underscoring the significance of this crossroads.

DOT's price has exhibited a notable surge after establishing a base above $6.00, overcoming numerous hurdles to reach $6.75 and even momentarily surpassing $7.25. However, its highest point was $7.46, and it is currently correcting gains in tandem with other prominent cryptocurrencies like Ethereum and Bitcoin.

The cryptocurrency is presently trading above the $7.00 region and the 100 simple moving average, with immediate resistance at $7.25 and a significant resistance level at $7.50.

A successful breach above $7.50 could trigger a new rally, potentially propelling DOT to the $8.00 level. However, the next substantial resistance level lies near $8.80, presenting a challenge for the cryptocurrency's upward trajectory.

If DOT fails to initiate a new increase above $7.25, the likelihood of a continued downward movement increases. Technical analysis highlights significant support levels at $7.00 and the 100 simple moving average.

A decline below this level could result in a price drop to $6.50, with further losses potentially leading to a slide towards the $6.10 support area or even $6.00. The 4-hour MACD and RSI indicators suggest continued selling pressure, emphasizing the importance of the current crossroads for Polkadot's future price movements.