Polkadot shows a falling wedge, signaling a potential bullish breakout.
MFI divergence strengthens the case for Polkadot’s price reversal.
Combined indicators suggest a strong upward move for Polkadot soon.
Polkadot (DOT) is flashing signs of a potential breakout on its weekly chart. A large falling wedge has formed, a pattern that often signals a bullish reversal.
Alongside this, there’s a bullish divergence showing up on the Money Flow Index (MFI). These two indicators together suggest that Polkadot could soon see a strong upward move soon.
https://twitter.com/CryptoBullet1/status/1837076131184291961 Falling Wedge Indicates Possible Breakout
A falling wedge pattern happens when a chart shows lower highs and lower lows, but the price action starts to tighten. On Polkadot’s weekly chart, this is exactly what's happening.
This pattern usually points to a decrease in selling pressure and hints at an upcoming bullish breakout. Traders often watch for falling wedges, especially on longer timeframes, as they can signal a major price reversal.
In Polkadot’s case, the falling wedge isn't the only bullish sign. There’s also a bullish divergence on the Money Flow Index, a tool that tracks both price action and trading volume. When the price falls but the MFI rises, it shows selling pressure is fading while buying interest grows.
MFI Divergence Adds to Bullish Outlook
The bullish divergence on Polkadot’s MFI strengthens the case for a breakout. This divergence occurs when the price continues to fall, but the MFI starts to climb.
It suggests that despite the price decline, buying activity is building. When this occurs alongside a falling wedge pattern, it becomes a strong signal that a price rebound might be near.
These combined indicators suggest that DOT could see a significant rally soon. As more traders notice this setup, buying activity may increase, pushing the price higher.
Polkadot’s weekly chart shows clear signs of a potential breakout. The falling wedge pattern and MFI divergence both point to a bullish reversal.
The post Polkadot’s Weekly Chart Signals Breakout: Falling Wedge & MFI Bull Divergence appeared first on Crypto News Land.
