🟣 Polkadot’s Mid-Term Correction Ends as Technical Patterns Align for a Breakout Toward $18-$20 in 2025
Polkadot’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.
💬 $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 I’m expecting BTC.D to collapse in Q1 So I think we should zoom out and aim higher🎯 My… — CryptoBullet December 31, 2024
🔸 #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.
🔸 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.
🔸 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.