šŸŸ£ Polkadotā€™s Mid-Term Correction Ends as Technical Patterns Align for a Breakout Toward $18-$20 in 2025


Polkadotā€™s (DOT) price shows signs of a bullish reversal with multiple technical indicators aligning. The 1D chart shows a Falling Wedge, a pattern that often signals strong price movements. This mid-term correction appears to be ending, setting the stage for a breakout.

šŸ’¬ $DOT 1D chartThis mid term correction is coming to an endI like this Falling Wedge and I think DOT will break out of it. Standard Falling Wedge target is $9-9.5 but as you know Iā€™m expecting BTC.D to collapse in Q1 So I think we should zoom out and aim higheršŸŽÆ Myā€¦ ā€” CryptoBullet December 31, 2024

šŸ”ø #DOT Falling Wedge and Fibonacci Levels

The Falling Wedge pattern highlights weakening bearish pressure. Converging trend lines and reduced volume suggest a buildup in bullish momentum. The price is consolidating near the 0.618 Fibonacci retracement level, a critical support zone. This level often serves as a springboard for upward moves.

The 100-day moving average (MA100) sits below the price structure, offering additional support. A breakout above the upper wedge line could trigger a rally toward higher resistance levels.

šŸ”ø 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.

šŸ”ø 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.