Polkadot (DOT) saw a price increase on the daily time frame as the cryptocurrency market surged. Some market watchers have suggested that the cryptocurrency is preparing for a breakout, setting new targets on short and medium-term time frames.
Polkadot is exiting a falling wedge pattern
Polkadot recorded a 10.9% increase in the last week after the market performance. DOT jumped from the $4.32 support area to the $4.53 mark before pulling back, recording a daily rise of 4.8% in the early hours of Tuesday.
The cryptocurrency also saw a 56% rise in market activity, recording a daily trading volume of $259.3 million. This increase made DOT retest the upper trend line of the falling wedge pattern.
CryptoBull360 Market Analyst male Polkadot is “preparing for a massive breakout” from the bullish pattern after a long consolidation period. DOT has been moving inside a falling wedge for the past seven months, consolidating between $4 to $4.8 since Black Monday in August.
The analyst noted that the token has seen a strong bounce from its Point of Control (PoC) value area, rising 11% in the past three days. Today’s jump saw the symbol break above the pattern’s upper trend line, sitting above it temporarily.
CryptoBull360 expects a retest of the March highs if the token succeeds in breaking out of the falling wedge. For him, a 160% mid-term rally is imminent, which would target a yearly high of $11.46.
Is DOT preparing to take back $20?
Cryptocurrency analyst Ali Martinez Suggested That Polkadot could “follow in Phantom’s footsteps.” DOT’s chart looks similar to Fantom’s before its March performance.
Before the first quarter rally, the FTM had twice risen to the upper band of its accumulation zone and rebounded before its 263% bull run towards the yearly high. If Polkadot follows, and its current pattern continues, the DOT price could rise to $9.7 in Q4.
After the sudden rally, the cryptocurrency will face a pullback to the $6.5-6.7 support zone before rising to $20 by Q1 2025, a level not seen since April 2022.
Despite the bullish outlook, some investors remain cautious about Polkadot. Crypto trader male That DOT followed Bitcoin’s lead like most of the market. The cryptocurrency rose to a daily high of $4.53 as BTC retested the $67,000 resistance level.
However, DOT quickly fell to Monday levels as BTC was rejected from its resistance zone. The trader questioned DOT’s 24-hour trend, saying: “BTC stops pumping, DOT goes up by a few percent, while most things don’t go up, and as soon as they start, the entire market goes down and DOT immediately loses everything it previously gained.” “.
As of this writing, DOT is trading at $4.42, an increase of 2.2% on the daily time frame.
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