- With a target of $8.00, Polkadot’s breakthrough from a descending wedge indicates a change in momentum from bearish to positive.
- DOT increased by 6% from $4.63 to $5.15 showing strong buying pressure and a potential 85% upside.
- The $4.63 breakout point now acts as support, with resistance near $5.50–$6.00 crucial for further gains.
Polkadot (DOT) experienced a price breakthrough in November 2024, climbing after emerging from a descending wedge pattern. From about $4.63 to $5.15, the price rose, representing a 6.05% gain.
Analyst World Of Charts predicts a potential 85.68% increase from the breakout point, with a target price near $8.00. This sharp upward movement suggests a shift in market sentiment, transitioning from a bearish to a bullish phase.
Price Action and Breakout Analysis
The given chart shows how the price of DOT/USDT changed on Binance between late 2023 and November 2024. Two trendlines pointing downward form a falling wedge formation on the chart. A run of lower lows is followed by the lower trendline, while a series of lower highs is captured by the upper trendline. This pattern typically signals a potential reversal, and DOT appears to be following that trend.
Initially, the price began above $6 in late 2023, peaking above $19 by early 2024. However, the price then began to decline, forming the descending wedge. By mid-2024, DOT oscillated within this wedge, stabilizing between $3.20 and $5.50. The upper boundary acted as resistance, while the lower boundary, near $3.20, offered support. The constant interaction between these two levels showed a gradual decrease in volatility as the wedge formed.
Outlook After the Breakout
The breakout in November marks a key turning point for DOT. The price surged above the upper trendline, signaling a potential upward move. Consequently, analysts expect the price to continue its rise, targeting an $8.00 level.
The breakout suggests increased buying pressure, shifting the market’s sentiment. Hence, the $4.63 level now serves as crucial support. If the price retraces, this support could act as a foundation for further gains.
Moreover, the resistance level near $5.50–$6.00, marked by the blue arrow, remains an important focus for future price movements. A sustained upward movement above this zone would indicate that DOT is entering a new bullish phase. However, the lower trendline near $3.20 remains a critical support zone should the price experience any pullbacks.
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