Polkadot's price has been stuck in a tight range, oscillating between $6 and $7.5, indicating a balance between buyers and sellers. This consolidation phase has created uncertainty about the cryptocurrency's next move. While there was a brief bullish rebound, selling pressure pushed the price back down, suggesting a short-term decline towards the lower boundary of the range.

On the 4-hour chart, Polkadot has formed an ascending wedge pattern, which could signal a continuation of the bearish trend if the lower threshold is breached. Intensified selling pressure near the $7.5 resistance level has led to a bearish reversal, with the lower trendline of the wedge serving as the next target. If sellers break this critical support, the bearish trend may resume.

Understanding perpetual futures market dynamics is crucial for short-term price movements. Liquidation events can drive significant price shifts, particularly after consolidation periods. Visualizing potential liquidity zones can offer valuable insights into where these events might occur. A notable liquidity pool is observed above the $7.5 level, and if the price reaches this region, it could trigger a significant liquidation event, leading to a rapid downturn.

After the consolidation phase, the price might experience a short-term pullback towards this level. However, analyzing how the price reacts to this zone is essential for longer-term projections. Market dynamics can shift rapidly, and nothing is guaranteed at this juncture. Will Polkadot break out or break down? The next price move will be crucial in determining its future trajectory.