Crypto analyst Captain Faibik has identified a bullish falling wedge breakout pattern for Polkadot (DOT) on the weekly timeframe chart. The analyst shared his outlook via X, setting a midterm price target of $40 for the blockchain platform’s native token, which would represent a 509% rise.

Technical Pattern Points to Strong Reversal

The weekly chart analysis reveals a clear falling wedge formation, a pattern that often signals the end of downward price movement. DOT’s price has broken above the upper trendline of this wedge pattern with notable momentum. 

$DOT Ready to FLY.. Falling Wedge Breakout on the Weekly timeframe Chart..Midterm Target : 40$#Crypto #Polkadot #DOT #DOTUSDT pic.twitter.com/lQs8U1hJZL

— Captain Faibik (@CryptoFaibik) November 27, 2024

The breakout level near $8 marks a potential turning point for the asset’s price trajectory.

The lower boundary of the wedge continues to act as strong support in the $5-$6 range. This price zone served as a foundation before the upward move began. Technical indicators suggest the previous resistance trendline could transform into a new support level.

Volume and Support Levels Shape Trading Outlook

The analysis shows multiple support zones emerging after the wedge breakout. 

The $6-$7 price range stands as a key level for maintaining upward movement. Trading volumes during the breakout phase align with historical patterns seen in previous bull runs.

The price action demonstrates a shift from the prolonged downtrend contained within the wedge structure. Chart patterns on the weekly timeframe indicate sustained buying pressure. The market structure suggests immediate resistance levels between $10-$12.

Read also: Fantom (FTM) Price Pumps: ‘There’s a Lot to Like,’ Says Elite Crypto Analyst

Market Context and Historical Performance

DOT’s previous price history shows that the $40 target aligns with resistance levels from the 2021 bull market cycle. The weekly timeframe analysis carries extra weight as it often reflects longer-term market sentiment and institutional trading patterns.

Captain Faibik’s analysis focuses on pure technical factors without incorporating broader market conditions. The chart pattern completion suggests a possible trend reversal, while historical price data provides context for the projected upward move.

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The post Analyst Sets His Midterm Polkadot (DOT) Price Target at $40 – Here’s Why appeared first on CaptainAltcoin.