Key Insights:
- Polkadot (DOT) forms a double bottom pattern, signaling a bullish reversal.
- A breakout above $5.32 could lead to a rally toward $6.52 and higher targets.
- Positive market sentiment, including the Polkadot ETF filing, suggests further growth.
Polkadot price demonstrates strong potential for price growth as analysts predict it will surpass the $5.32 resistance barrier. The daily charts reveal bullish reversal patterns that indicate DOT price will shift toward increasing market momentum. Analysts predict DOT price will surge toward $6.52 followed by additional price increases.
Double Bottom Pattern Suggests Bullish Reversal
At press time DOT is trading at $4.309 with a slight dip from its previous trading price. Polkadot displays a double bottom pattern in daily charts that market analysts recognize as a bullish reversal indicator. The price marked $3.72 serves as both a first bottom and a second bottom in this chart formation.
Market analysis indicates that such price action suggests bullish upside potential since the support area received multiple challenges without sustaining downward motion which demonstrates accumulated buying pressure.
Market analysts observe Polkadot’s neckline resistance area between its two bottoms because this serves as a crucial breakout threshold. A breakthrough of Polkadot above its neckline would confirm the positive trend reversal. Furthermore, technical analysis projects a target breakout price of $6.00 based on the current pattern analysis.
The current RSI (Relative Strength Index) value of 45.61 shows neither strong nor weak market momentum at its current state. When the price rises above 50 indicators will reinforce market buying strength to trigger future price appreciation.
The CVD indicator reports -372.54K as its current reading which suggests market participants have been primarily selling Polkadot. However, this could be a sign of consolidation, with potential for a breakout if buying pressure increases.
Market Analyst Predicts Polkadot Price Breakout
The market expert predicts that Polkadot’s breakout validity and future upward trend will become evident after the currency retraces to the $5.32 resistance threshold. When DOT succeeds in surpassing this level then it will establish the beginning of an uptrending pattern for the coin.
LLuciano_BTC identifies a falling wedge pattern on the Polkadot chart to indicate that downtrends will consolidate before shifting towards upward movement. The price has recently broken through its wedge pattern confirming positive momentum for upcoming bullish movements.
At present the price point is testing the key support level which previously limits its upward development. A sustained upward price movement may occur if the price successfully breaches the existing resistance trendline. If the breakout is confirmed,analysts expect Polkadot to target levels around $7.59, $9.15, and potentially $11.64, depending on the market conditions.
The recent 21Shares Polkadot ETF application to NASDAQ occurred within 21 days of Grayscale’s submission boosting positive sentiments for Polkadot. The firm sent its Form 19b-4 registration request officially to the SEC for approval of ETF listing.
The company has been actively working on various crypto ETFs, including those for XRP. The increased institutional attention towards Polkadot signals potential price growth because it will stimulate rising market demand.
Disclaimer
This article is for informational purposes only and does not provide financial, investment, or other advice. The author or persons mentioned in this article are not responsible for any financial loss that may result from any investment or transaction. Please conduct research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.