Polkadot, a prominent altcoin, has been oscillating between key support and resistance levels, leaving the market uncertain about its future direction. The cryptocurrency has been moving sideways, fluctuating between $6.4 and $7.4, with a recent upward trend encountering resistance at the 200-day moving average.

Analysis of the daily chart reveals a balance between buyers and sellers, potentially leading to continued consolidation until a valid breakout occurs. In the short term, a slight downward trend targeting the critical $6.4 level is expected. The 4-hour timeframe shows Polkadot's price confined within a decisive range, with no clear sign of its next move.

Fibonacci levels indicate potential seller dominance and insufficient upward momentum, likely leading to another downward trend. However, analyzing the sentiment in the futures market reveals a recent decline followed by horizontal consolidation, with Open Interest and Funding Rates experiencing significant drops. This pattern, similar to the start of 2024, may lead to increased demand and a strong upward trend.

If the current consolidation phase results in intense demand and the application of long positions, the market may be poised to enter a notable upward trend targeting higher price levels. Emerging trading patterns will dictate future market movements, making it essential to monitor Polkadot's market behavior closely.