Analyst ZAYK Charts analysis has highlighted the potential for a Polkadot (DOT) price rally. Currently consolidating in a falling wedge pattern, the expert advises that DOT could see a breakthrough resulting in a 70.5% rise.
ZAYK’s analysis shows Polkadot has been trading in a falling wedge pattern since 2023. This pattern is typically a bullish formation, signaling a potential reversal. The pattern forms as two downward-sloping trendlines converge, creating compression that can result in a breakout.
The chart shared by ZAYK Charts shows that DOT is nearing the upper boundary of the wedge. Should the price break above this trendline, the breakout could trigger an upward movement, offering a potential opportunity for traders. The price target for this breakout is estimated to be around $7.40.
Price Action and Bullish Potential
Polkadot’s price action within this wedge has been closely monitored, with the current price testing key resistance levels. The pattern suggests a potential bullish breakout if DOT surpasses the upper trendline.
Historically, such patterns often lead to a reversal of the downtrend, sparking increased momentum.
ZAYK Charts’ analysis points to a projected price increase of 70.5%, based on the height of the wedge and the breakout point. If the price moves as predicted, it could mark a substantial gain for Polkadot.
Key Takeaways from the Chart Analysis
ZAYK Charts emphasized the importance of the timeframe, noting that the analysis is based on the 2-day chart. This longer timeframe indicates that any potential breakout could be more sustained, offering traders a more stable bullish move.
The projected price target, calculated at approximately $7.40, aligns with the historical patterns observed in similar formations. If this breakout occurs, it could validate the bullish outlook for Polkadot soon.
⚠️Disclaimer
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