Analyzing the Daily Chart reveals a sharp decrease in price after encountering resistance at $12, leading to a breach below the bullish trendline formed since October 2023. The breakdown of the 200-day moving average near $7 suggests a possible move towards the $4 support area. The Relative Strength Index below 50% indicates a prevailing bearish momentum.

In contrast, examining the 4-hour chart provides a clearer perspective of recent price movements, illustrating the formation of an ascending channel pattern. Typically indicative of bearish continuity within a larger downtrend, a breach of the channel could drive the market towards the $4 support zone. Conversely, breaking above the channel might initiate a shift towards a bullish trend, implying the market's near-term outcome is heavily dependent on whether the channel breaks upward or downward.

Despite the bearish trend depicted in the DOT price chart, futures market data offers a glimpse of a potential short-term recovery. The liquidation heatmap for the Binance DOT/USDT pair reveals significant liquidity below $6.5, a level that has recently been breached. This shift could suggest absorption of supply by demand, preventing further decline. Notably, there is a liquidity pool above the $7 threshold, indicating a probable short-lived rebound towards this level in the near future.