Polkadot (DOT) Price Prediction 2024-2025: Can DOT Break Above the Bullish Falling Wedge Pattern?

After a week of promising price increases, Polkadot [DOT] bears took control as its price declined in the last few hours. However, there was more to the story as a bullish pattern formed on the token's price chart.

Despite promising price increases throughout the week, Polkadot [DOT] encountered a bearish trend with a price decline in the last few hours. However, a closer examination of the token’s price chart revealed a bullish pattern formation.

Let’s analyze the possibility of DOT breaking above the pattern soon. 

Polkadot’s upcoming rally

Data from CoinMarketCap highlighted a over 13% price increase for Polkadot in the last week. However, the scenario shifted in the last 24 hours as its value dropped by more than 5%.

At press time, DOT was trading at $4.57 with a market capitalization of over $6.6 billion, ranking it as the 14th largest cryptocurrency.

The bearish price action impacted its social metrics as well, with its weighted sentiment dropping into the negative zone. This indicated an increase in bearish sentiment around the token.

Moreover, its social volume also registered a gradual decline, indicating a decrease in its popularity. 

Source: Santiment

Interestingly, ZAYK Charts, a renowned crypto analyst, recently shared an observation in a tweet. According to the tweet, the token’s 2-day chart showcased a bullish falling wedge pattern.

The pattern began forming at the start of 2024, and since then, DOT has been consolidating within the pattern. At press time, it appeared to be on the verge of a breakout.

If the breakout occurs, it could propel Polkadot toward the $10 price level in the upcoming weeks or months. 

Source: X

Analyzing the possibility of a breakout

Next, AMBCrypto analyzed the token’s on-chain data to assess the likelihood of a breakout.

Our analysis of Santiment’s data revealed a decrease in DOT’s trading volume alongside its price. This indicated a potential upcoming uptrend for DOT.

Furthermore, the token’s open interest also flattened out. Whenever the metric stalls, it could hint at a trend reversal.

Notably, while the price action remained volatile, DOT’s development activity remained high, a front on which DOT has led the pack for several years now. 

Source: Santiment

Moreover, at the time of writing, Polkadot’s fear and greed index was in a “fear” phase. Whenever that happens, it suggests that the chances of a price increase are high.

Hence, AMBCrypto checked its daily chart for a better perspective on what to expect. DOT’s price had rebounded after touching the lower Bollinger Band.

Read Polkadot [DOT] Price Prediction 2024-2025  

Additionally, the Chaikin Money Flow (CMF) also registered an uptick, which appeared bullish. 

If the token turns bullish, it first has to test its resistance around its 20-day Simple Moving Average (SMA). A breakout above that level could initiate a rally. 

Source: TradingView

The above is the detailed content of Polkadot (DOT) Price Prediction 2024-2025: Can DOT Break Above the Bullish Falling Wedge Pattern?. For more information, please follow other related articles on the PHP Chinese website!