Polkadot (DOT) has experienced fluctuations in its value during December, with its price dropping to $7.16. However, this decline has also revealed a support level that traders are closely monitoring. Technical indicators suggest that the cryptocurrency may be preparing for a significant move. On-chain data shows that there has been a spot outflow, indicating potential demand. Traders see the dip as an opportunity for accumulation, with the potential for a 50% rally triggered by the Polkadot 2.0 upgrade. Funding rates have been increasing, reflecting an increase in long positions. However, the overall longs vs. shorts ratio is still slightly bearish. In the derivatives market, a Head and Shoulders pattern is forming, which typically suggests a bearish reversal. Despite these trends, Polkadot has maintained support at $6, demonstrating buyer confidence. Breaking through the $9 resistance is seen as crucial for upward movement. The market's reaction to the Federal Reserve meeting has also influenced Polkadot's performance, with traders divided on the future direction.



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