- Using DOT/USDT daily candles chart, manufacturers can see that DOT cryptocurrency forms a falling wedge pattern that predicts a bullish run.
- Experts expected the DOT price could grow close to 2 times the height of the wedge structure.
- In particular, technical analysis is important when investment is focused on cryptocurrencies because of high fluctuation and possible trading patterns.
Those stakeholders interested in the current price trends of digital assets are paying a lot of attention to the Decentralized Governance Token (DOT). DOT is an altcoin associated with the Polkadot blockchain. Dot has been in a place position since December 2020, we anticipate the bulls to start recovering this currency from the falling wedge pattern soon.
Falling Wedge Pattern Breakout
The DOT/Tether USDT trading pair on the CryptoCove exchange has been showing a very clear falling wedge formation for quite some time now. Otherwise, this technical formation is considered as a bullish signal as the formation usually indicates a reversal of the downward process.
The chart analysis shows that DOT has managed to break out of this falling wedge pattern which means that it has a potential for a bullish pattern. Traders and investors are closely observing this formation as a breakout from a falling wedge often means that the subsequent rally can reach the height of the entire chart pattern at least twice.
Potential for Bullish Rally
The price breakout from the falling wedge pattern has brought back the bullish outlook on the DOT cryptocurrency. Analysts focusing with values, expect a rise in the token to a considerable point in the next few days.
âThe patterns of falling wedges and their breakout for DOT are good news for its investors, according to the market analyst, Sarah Thompson. âIn the future if the trend progresses as expected then traders and investors could be in for the ride of their lives especially if DOT replicate the Polkadot and shoot up to a 2X in priceâ
But these fluctuating cryptocurrency markets must be borne in mind, as no previous returns indicate future outcomes. Market speculation can only be controlled if the investors/traders engage in good research and always understand the impact of their portfolio in the market.
The events in the DOT market show that technical analysis remains relevant in the cryptocurrency market. Understanding chart patterns and its indicators can easily help traders or investors to spot trading opportunities at the right time.
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