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After a long correction phase of six months, Polkadot (DOT) attracts interest again; Some analysts think the token is about to undergo a major bullish reversal.
One of these market analysts, also known as “Worlds of Charts,” notes that a falling wedge pattern has emerged that is sometimes interpreted as a sign of an impending upside breakout.
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Polkadot’s technical configuration has continued to gain steam. investors are closely watching what could be a remarkable rise for the booming altcoin.
$Point#Point Polkadot is showing signs of turnaround after a six-month corrective phase. The formation of a falling wedge pattern, coupled with pronounced bullish divergence on the key indicators, indicates a high probability of a successful breakout. After confirmation, DOT can focus on… pic.twitter.com/1JpVUM0oHJ
— World of Charts (@WorldOfCharts1) September 25, 2024
As long as the larger crypto market comes back to life, this prediction doesn’t seem unreasonable, as Polkadot is important to blockchain interoperability and has the potential to attract renewed investor attention.
Falling wedge: bullish reversal pattern
One of the most consistent technical indications for identifying reversals is the formation of falling wedges. The token moved in two downtrends, causing its price range to decline.
The trajectory normally indicates a decreasing bearish attitude; As negative momentum diminishes, the likelihood of a breakout to the upside increases. For Polkadot, the trend has been developing over several months, indicating that the token may be gearing up for a significant price increase.
Adding to this is the relative strength index, another well-known momentum indicator, which recently made higher lows even as DOT’s price trended lower.
The differences in price and momentum, which always indicate waning selling pressure, indicate that bulls are about to regain control. The technical situation favors a rally despite expected volatility.
Price growth potential and market sentiment
Considering that the token is up 13% over the past week and is showing a remarkable 2.47% growth in the past 24 hours, Polkadot’s current market sentiment is quite positive.
These increases indicate growing demand for DOT, even though broader market conditions are still unknown. Currently trading at $4.92the cryptocurrency has a market cap of $7.51 billion and a small increase in trading volume.
The optimistic forecast for the coming years is even more motivating. Should DOT break its wedge formation, experts believe the price could move towards the $12 resistance level.
Achieving that would mark a major turnaround from the token’s current decline and would create conditions for even further gains in the coming months.
Polkadot: long-term projections
Looking ahead, Polkadot’s development promise seems even more remarkable. In six months, CoinCheckup predicts price growth of 311%; for the coming year it predicts a more impressive increase of 425%.
These numbers reflect Polkadot’s ongoing network changes, including new alliances and an emphasis on increasing cross-chain capacity.
Featured image of Polkadot, chart from TradingView
