Polkadot (DOT) might be gearing up for a turnaround. It’s been tracing a falling wedge pattern lately—a setup that often hints at a bullish shift.
Analyst Crypto Winkle has been keeping an eye on it, pointing out how DOT’s price has stayed steady at important support zones, even with the market bouncing around. If it breaks out of this wedge, the analyst anticipates a nice rally kick off, that may be enough to nudge DOT back into the top 10 cryptocurrencies by the end of the year.
What you'll learn 👉
DOT Pattern Signals Imminent Breakout
The daily chart by Crypto Winkle reveals DOT forming a falling wedge, a pattern characterized by lower highs and lows within a contracting price range. This setup indicates waning selling pressure, often preceding an upward move.
Currently, DOT is testing the wedge’s lower boundary, where buyers have established a strong support zone. According to Crypto Winkle, this level represents a prime accumulation area, suggesting traders are positioning for a breakout.
Historically, assets breaking out from falling wedges see substantial price increases. If DOT follows this pattern, a bullish reversal could unfold, leading to higher price targets.
Buyers have consistently protected against additional losses in the critical accumulation zone around $3.80 and $4.20, as indicated by DOT’s price action. This level has served as a robust demand zone, supporting the likelihood of a recovery.
On the upside, the first resistance is near $6.00, followed by $7.50. If momentum builds, DOT could rally past $10, confirming a stronger recovery.
Crypto Winkle remains optimistic about DOT’s resilience, emphasizing that projects surviving bear markets often thrive in bullish cycles.
Read also: We Asked AI to Predict Bittensor (TAO) Price If Bitcoin Dips to $70K
Market Sentiment and DOT Price Action
At the time of writing, DOT trades at about $3.99. This is a 5.27% decline over the past day and a 6.44% drop in the past week, as per CoinGecko data. Despite the downturn, trading volume stands at $300.7 million, indicating active participation.
Market sentiment remains mixed, but DOT’s ability to hold key support suggests underlying strength. Analysts point to the RSI, which indicates the asset is nearing oversold conditions—a potential precursor to a reversal.
Crypto Winkle believes a confirmed breakout could propel DOT back into the top 10 cryptocurrencies. Historically, assets that withstand bearish pressure tend to outperform in bullish phases. With its solid fundamentals and strong support, DOT may see a major recovery.
A decisive move above the wedge could ignite a rally, potentially positioning DOT for a stronger performance in the coming months.
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