Polkadot's Price Hangs on $5.30 Resistance for Bullish Momentum

Polkadot's price movement is currently at a critical juncture, with the cryptocurrency's ability to stay above the $5.30 zone being a key factor in determining its future trajectory. If Polkadot can maintain its position above this level, it could pave the way for a significant upward move, potentially reaching $8.00. However, if the price is rejected around $5.30, it could lead to a correction back to $4.70 or even retest the $4.30-$4.00 accumulation range.

At the time of reporting, Polkadot was trading at $5.07, with a recent surge in price and trading volume indicating bullish sentiment among investors. The Moving Average Convergence Divergence (MACD) indicator has also turned bullish, with the MACD line crossing over the signal line and elevated histogram bars suggesting growing upside momentum.

The $5.30 level is crucial as it marks the end of a prolonged base accumulation zone. A successful breakout above this level could confirm the upside scenario, while a failure to hold above it could indicate a fakeout, especially if accompanied by declining volume. The Liquidation Map shows large long leverage positions between $4.54 and $5.09, with more long balance than short balance, indicating that traders are entering positions with high leverage in anticipation of an upward move.

If Polkadot can break above $5.30, it could trigger short liquidations and generate upward pressure, potentially pushing the price towards the $5.50 – $5.75 area. However, if the price drops to $5.09 or lower, tightly grouped high-leverage longs could be liquidated, accelerating a drop towards $4.80 or below. Despite the technical setup and bullish sentiment, Polkadot's Active Addresses have fallen to 62.1K, suggesting that network activity remains subdued and potentially weakening on-chain support for a breakout.

In summary, Polkadot's ability to stay above the $5.30 resistance level will be a key factor in determining its future price movement. A successful breakout above this level could open the door for a significant upward move, while a rejection could lead to a correction. The current technical indicators and trader sentiment suggest bullish momentum, but subdued network activity could potentially weaken on-chain support for a breakout.