The recent movement of Polkadot's price has been calm and stable after quickly falling to around $6. However, the cryptocurrency is now facing a critical moment where a breakout could determine its future direction.

Technical Analysis of Polkadot's Price:

On the daily chart, Polkadot has been consolidating around $6 with low volatility, indicating a standoff between buyers and sellers. Strong support lies at the $6.93 mark and the 0.618 Fibonacci level of $6.7. These levels could prevent further decline and push the price towards the resistance zone at $9.

Looking at the 4-hour chart, Polkadot dropped to $6 but found demand, leading to a slight rebound. However, the sideways movement that followed shows little momentum. A breakout above a triangle pattern could continue the bullish trend, aiming for $7.4 and $7.8, indicated by Fibonacci levels. On the other hand, breaking below the triangle's lower boundary could result in a further drop to $6.

Analysis of Market Sentiment:

The futures market plays a significant role in impacting Polkadot's price movements, especially after periods of consolidation. Liquidations within the futures market drive short-term price swings. The Binance DOT/USDT liquidation heatmap shows concentration of liquidity at $7 and $6, indicating possible liquidation events. A surge towards $7 could trigger liquidations, leading to increased volatility and a short-term decline, while dropping to $6 could result in a rapid rise due to long liquidations, causing an immediate rebound. These levels are critical references for the market trend moving forward.