Polkadot's Price Faces Downward Pressure, Breaching $6 Support Level

According to CryptoPotato, Polkadot's price has seen increased selling pressure, resulting in a drop below the significant $6 support region. This trend suggests a bearish sentiment in the market, with the possibility of a continued downward trajectory. The daily chart shows that Polkadot has encountered strong selling near the crucial $6 support region, leading to a significant breach of this key support level. This highlights the intense selling pressure in the market, which is not limited to Polkadot but extends to all altcoins. The price has fallen below the lower boundary of a multi-month triangle and previous major swing lows, indicating a strong bearish sentiment. Moreover, the 100-day moving average has crossed below the 200-day moving average, signaling a death cross. This development further suggests a prevailing bearish sentiment. Given this situation, the price is likely to fall towards the substantial $5 support region and may undergo a period of consolidation around this level. On the 4-hour chart, Polkadot experienced increased selling activity, resulting in bearish retracements. These retracements have led to the formation of a bearish price channel, with the cryptocurrency currently hovering around its lower boundary. After breaking below the crucial $6 threshold, the price completed a pullback to the broken level, further validating the bearish scenario. Polkadot is expected to face increased volatility in the short term and continue retracing towards the crucial $5.4 support. Following the recent break below the crucial $6 support region, Polkadot's price has triggered a significant long-squeeze event, liquidating a substantial number of long positions. This development is crucial for understanding potential future movements in the market. Currently, there is a significant amount of liquidity resting near the $6 mark, likely comprising buy-stop orders from aggressive short positions initiated near this critical threshold. However, the price's ability to gather liquidity at this level could also influence a sustained continuation of the bearish trend.