Polkadot's falling wedge breakout on the weekly chart suggests a potential midterm rally toward $40, with critical resistance at $10 and $20.
The retest of the breakout point confirms support, increasing the likelihood of sustained upward momentum.
Volume and momentum indicators remain crucial for gauging the strength of Polkadot's bullish breakout.
Overall, Polkadot (DOT) has received attention at the cryptocurrency level after an impressive bullish breakout from a falling wedge pattern on a weekly time frame chart. This technical formation consisting of three ascending lines can be regarded as the end of a downtrend and a signal to start up a new trend. Analysts believe that after the retest of the breakout triggers a post- breakout rally, DOT can achieve a midterm value of $ 40 which is significantly above the current prices.
Falling Wedge Breakout: A Key Technical Signal
The falling wedge is an established bullish reversal signal which develops through prices fluctuating in parallel wedges of progressively declining angles. In the case of DOT, this breakout suggests a violation of this pattern and a potential sign of turning in the market sentiment with the buyer taking ownership of the price direction.
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After the breakout, DOT returned to test the upper trend line of the wedge which served as the resistance line. This retest is a confirmation of the breakout mostly supporting the continuity of the upward trend.
$40 Midterm Target: How It’s Calculated
Again based on technical analysis, it was established that the price target for a falling wedge breakout can be achieved by measuring the height of the wedge and drawing it down from the breakout point. In the case of DOT, percentage change in EPS indicates a midterm EPS target of $40. Although this level is quite feasible according to the past prices, market actors should bear in mind possible challenges: resistance levels of $10 and $20.
DOT’s bullish setup comes, especially now the cryptocurrency market is proving to attract institutional and retail investors again. Nonetheless, macro factors in the wider market including policies in the industry area as well as general macroeconomic factors will go a long way into deciding if DOT will hit the projected target or not.
Also, volume and other momentum measures must also be kept an eye on because they should help back up the evidence pointing to buyer interest among traders. High turnover and a positive trend persistence are desirable characteristics for continuing to apply pressure on prices.
The post $40 Target for DOT: The Technical Formation That’s Driving Market Optimism appeared first on Crypto News Land.
