- Polkadot’s price surged in double digits last week, but the last 24 hours were bearish.
- Most metrics hinted at a price increase, which could result in a breakout from a bullish pattern.
As a seasoned analyst with years of experience observing the crypto market, I must say that Polkadot [DOT] has shown some intriguing behavior lately. Last week, we saw a promising surge in DOT’s price, but the last 24 hours have been a bit of a rollercoaster ride. However, if you look closely at the price chart, a bullish pattern seems to be forming – a falling wedge that hints at a potential breakout.
Following a week of anticipated price hikes, DOT‘s value started dropping over the past few hours, giving control back to the bearish investors. Yet, an optimistic trend emerged in its price graph, hinting at potential bullish developments.
Let’s have a look at whether DOT can break above the pattern anytime soon.
Polkadot’s upcoming rally
According to CoinMarketCap’s findings, Polkadot experienced a 13% increase in price over the past week. However, within the past day, its value has dropped significantly, falling by over 5%.
Currently, as I’m typing this, DOT is being exchanged for approximately $4.57 each, and its total market value surpasses $6.6 billion. This positions DOT as the 14th largest cryptocurrency in terms of market capitalization.
Experiencing a downturn in its market value led to a decrease in positive opinions about it online, as the overall feeling towards the token became more pessimistic or bearish.
Its social volume also registered a gradual decline, reflecting a decline in its popularity.
Currently, a well-known crypto analyst named ZAYK Charts has drawn attention to an intriguing occurrence regarding a specific token. In a recent tweet, he pointed out that a bullish “falling wedge” pattern has emerged on the token’s 2-day chart.
In early 2024, this particular pattern emerged, and ever since, DOT has been strengthening within this pattern. As we speak, it seems to be on the verge of breaking out.
In case that happens, then it might push Polkadot toward $10 in the coming weeks or months.
Is a breakout possible?
After examining the on-chain statistics of the token, AMBCrypto determined if a potential surge was imminent. Upon reviewing Santiment’s data, we noticed that the trading activity and price for DOT had decreased simultaneously.
This indicated that DOT might soon register greens.
Furthermore, the open interest ceased as well. A decrease in this figure often suggests a shift in the trend direction.
Despite the fluctuating prices, the development activity of DOT stayed robust, an area where DOT has held a leading position for quite some time.
Additionally, at the moment of composing this, the Fear & Greed Index for Polkadot was indicating “fear.” This typically implies a higher probability of an upcoming price rise.
To get a clearer picture of upcoming trends, AMBCrypto examined its daily graph for insights. Notably, DOT‘s price bounced back following its touch with the lower boundary of the Bollinger Bands.
Read Polkadot [DOT] Price Prediction 2024-2025
Moreover, the Chaikin Money Flow (CMF) also registered an uptick, which looked bullish.
If the token exhibits a bullish trend, it initially needs to challenge its resistance around its 20-day Simple Moving Average (SMA). Overcoming this threshold might trigger an upward movement.
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2024-08-12 14:16