Crypto analyst Captain Faibik has identified a bullish falling wedge breakout pattern for Polkadot (DOT) on the weekly timeframe chart. The analyst shared his outlook via X, setting a midterm price target of $40 for the blockchain platform’s native token, which would represent a 509% rise.
What you'll learn 👉
Technical Pattern Points to Strong Reversal
The weekly chart analysis reveals a clear falling wedge formation, a pattern that often signals the end of downward price movement. DOT’s price has broken above the upper trendline of this wedge pattern with notable momentum.
The breakout level near $8 marks a potential turning point for the asset’s price trajectory.
The lower boundary of the wedge continues to act as strong support in the $5-$6 range. This price zone served as a foundation before the upward move began. Technical indicators suggest the previous resistance trendline could transform into a new support level.
Volume and Support Levels Shape Trading Outlook
The analysis shows multiple support zones emerging after the wedge breakout.
The $6-$7 price range stands as a key level for maintaining upward movement. Trading volumes during the breakout phase align with historical patterns seen in previous bull runs.
The price action demonstrates a shift from the prolonged downtrend contained within the wedge structure. Chart patterns on the weekly timeframe indicate sustained buying pressure. The market structure suggests immediate resistance levels between $10-$12.
Read also: Fantom (FTM) Price Pumps: ‘There’s a Lot to Like,’ Says Elite Crypto Analyst
Market Context and Historical Performance
DOT’s previous price history shows that the $40 target aligns with resistance levels from the 2021 bull market cycle. The weekly timeframe analysis carries extra weight as it often reflects longer-term market sentiment and institutional trading patterns.
Captain Faibik’s analysis focuses on pure technical factors without incorporating broader market conditions. The chart pattern completion suggests a possible trend reversal, while historical price data provides context for the projected upward move.
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