DOT's price tests support near $6.68 within a falling wedge, signaling a potential bullish breakout.
Short-term breakout targets are set at $9–$9.5, with extended projections between $18 and $20.
Broader market dynamics, including the decline, could drive DOT's performance in Q1 2025.
Polkadot’s (DOT) daily chart shows a falling wedge pattern, often associated with potential bullish breakouts. Analysts tracking the asset have noted that this mid-term corrective phase appears to be nearing its conclusion. The current chart structure suggests that DOT could see a significant upward movement if the pattern resolves as expected.
The falling wedge on DOT’s daily chart aligns with historical patterns that often indicate a reversal to the upside. Based on technical analysis, the standard target for a breakout from this formation is in the $9–$9.5 range. This target reflects the expected movement calculated from the wedge’s widest point and marks a potential first step in DOT’s recovery.
According to a chart by Crypto Bullet, the current price rests near $6.68, testing support levels aligned with the Fibonacci 0.5 and 0.618 retracement zones. Breakout targets are positioned at $9.5 for short-term gains, with potential extended targets between $18 and $20, indicated by the upward trajectory arrow.
Source: Crypto Bullet(X)
Maintaining momentum and breaking key resistance levels will be essential for DOT to reach this zone. Analysts emphasize that such movements are typically accompanied by increased trading volume and improved sentiment among market participants.
While the $9–$9.5 target is the immediate projection, broader market dynamics could influence DOT's performance. Observers are keeping an eye on Bitcoin Dominance, with some expecting a decline in the first quarter of 2025. If BTC.D falls significantly, it could create an environment where alternative cryptocurrencies like DOT outperform and extend their gains.
In this scenario, DOT could potentially aim for higher levels beyond the initial breakout target. Analysts have identified $18–$20 as a longer-term target zone for the asset, assuming favorable market conditions and a sustained uptrend. Achieving this level would require overcoming additional resistance zones and a supportive macroeconomic backdrop.
