Cup and Handle Pattern Adds Bullish Potential
Beyond the Falling Wedge, Polkadot is forming a Cup and Handle pattern on higher time frames. This rare formation suggests a long-term bullish outlook. The cup represents a rounded bottom, indicating accumulation, while the handle indicates a consolidation phase. If confirmed, this pattern could propel DOT to new highs in 2025.
The potential upside from the Cup and Handle aligns with the $18-$20 target zone. Historical data shows this pattern often leads to sustained rallies, especially in strong market conditions.
Initial and Extended Targets
The immediate target for the Falling Wedge breakout is $9-$9.50. This range coincides with horizontal resistance from previous price action. However, if Bitcoin dominance weakens in Q1 2025, altcoins like DOT could see accelerated gains. The extended target of $18-$20 aligns with the Cup and Handle pattern’s breakout potential.
Key Levels and Volume Requirements
DOT must break the wedge’s upper trendline with strong trading volume to confirm the breakout. Without volume, the move could fail. Traders should also watch for support at $5.70, which could be retested if the breakout delays. These indicators suggest Polkadot is primed for a significant rally