Polkadot (DOT) moves out of rising wedge pattern, lack of concerns 🔥

Polkadot (DOT) is a highly-watched cryptocurrency in the blockchain space, known for its innovative approach to interoperability and scalability.

However, its price action is influenced by several technical analysis patterns, one of which is the rising wedge pattern.

The rising wedge pattern on the DOT price chart hints that despite the recent upward trend, a downward trend may be in the future. Traders and investors often look for confirmation signals of a break below the lower base of the wedge to predict potential selling pressure.

4-hour chart:

DOT is in a consolidation trend, with both the upper and lower bases of the wedge accumulating momentum below the 100-day simple moving average. Relative Strength Index (RSI): The RSI is slightly below the 50% level, suggesting that the price may break below the lower base of the wedge, pointing to the recent key support level.

1-day chart:

DOT price is trending inside the wedge, approaching the lower base. 1-day RSI: The RSI line is close to falling below the 50% level. Investors are advised to pay attention to the risk of breaking the wedge.

If the price breaks the wedge, it may fall to the support level of $4.8. If it falls below $4.8, it will fall further to the support level of $3.5.

On the contrary, if the price reverses and breaks through the upper bottom of the wedge, it may rise to the resistance level of $9.8. After breaking through $9.8, the target will test the resistance level of $11.9. If it closes above $11.9, it may usher in a stronger rise.

Although the recent price trend of Polkadot (DOT) shows an upward trend, the rising wedge chart pattern suggests a possible pullback in the future.

The market is ups and downs, breaking the information gap, grasping the trend, and following the trend. Pay attention and no longer be confused! Look carefully, more strategies 🔍 Find me on the public Z account: Web Wanxiang