Polkadot's price is experiencing intense selling pressure, resulting in a significant drop below the $6 support level. This indicates a bearish market sentiment, which may lead to a continued downward trend. The cryptocurrency has breached the key $6 support level, and its price has fallen below the lower boundary of a multi-month triangle, signaling a strong bearish sentiment.

The 100-day moving average has crossed below the 200-day moving average, indicating a death cross and suggesting a prevailing bearish sentiment. As a result, the price is likely to fall towards the $5 support region, where it may experience a period of consolidation. The 4-hour chart shows a bearish price channel, with the cryptocurrency hovering around its lower boundary. Polkadot's price is expected to face increased volatility and continue retracing towards the $5.4 support level.

The recent drop below the $6 support region has triggered a long-squeeze event, liquidating a substantial number of long positions. This development is crucial in understanding future market movements. There is significant liquidity near the $6 mark, comprising buy-stop orders from aggressive short positions. However, the price's ability to gather liquidity at this level could influence a sustained continuation of the bearish trend.

Polkadot's price drop is not an isolated event, as all altcoins are experiencing intense selling pressure. The market sentiment is bearish, with sellers dominating. The cryptocurrency's price may enter a consolidation stage within the pivotal price range, spanning from the dynamic support of the 200-day moving average to the crucial resistance at $9 in the medium term.

The recent geopolitical tensions in the Middle East have affected the market sentiment, leading to a significant downturn in Polkadot's price. However, this event has also led to the liquidation of long positions, paving the way for a potential bullish rebound towards higher price thresholds.