Polkadot's recent price action has been a puzzle, struggling to overcome the critical $7.5 resistance region and the 100-day moving average at $7.4. Despite a bullish surge from the $6.5 support level, the current momentum appears insufficient, hinting at a possible short-term consolidation near this pivotal level. A closer examination of Polkadot's daily chart reveals a resurgence of demand near $6.5, followed by a bullish movement that brought DOT to a critical resistance zone defined by the 100-day moving average and the static level at $7.5. Breaking out from this key price range could attract more demand, leading to a sustained bullish movement. However, the current price action around $7.5 indicates fading bullish momentum, with buyers facing significant challenges pushing the price beyond this resistance.

In this scenario, a sideways consolidation or slight rejection is likely before the next decisive move, with the $6.4 level emerging as the primary support in the mid-term. The 4-hour chart reinforces this notion, showcasing a decrease in bullish momentum upon reaching a significant resistance zone, with the price failing to breach its prior swing high. This critical resistance range is bounded by the 0.5 ($7.415) and the 0.618 ($7.821) Fibonacci levels, with a potential double-top pattern forming near this resistance, suggesting a possible short-term rejection. Should buyers overcome the substantial resistance at $7.8, the next target would be the upper boundary of the wedge in the mid-term. Conversely, a rejection at this level could lead to another downward move, targeting the wedge's lower boundary.

A decisive breakout from this wedge pattern will be necessary to determine Polkadot's future direction. Sentiment analysis reveals a lack of strong bullish momentum, with futures market activity significantly influencing price movements. Despite the recent bullish move, open interest and funding rates have remained near their lowest levels, showing no significant increase. This indicates a lack of confidence in continuing the uptrend, suggesting that market participants are not increasing their long positions significantly. Given the dormant funding rates and low open interest, the likelihood of a consolidation correction increases, potentially leading to a period of sideways movement or slight declines before determining the next direction.

However, if open interest and funding rates increase, this would signal renewed bullish momentum, indicating that traders are gaining confidence and entering more aggressive long positions, potentially solidifying the uptrend. In conclusion, Polkadot's price puzzle presents a complex and challenging environment for traders. The current struggle to overcome $7.5 resistance and the 100-day moving average suggests a possible short-term consolidation, with the $6.4 level emerging as the primary support in the mid-term. A decisive breakout from the wedge pattern will be necessary to determine Polkadot's future direction, with sentiment analysis revealing a lack of strong bullish momentum. As the market navigates this critical juncture, it is crucial for traders to remain aware of the underlying factors driving Polkadot's price and adapt their strategies accordingly.