Jan 27, 2025 12:05
The Polkadot (DOT) market endured a rather turbulent trading week marked by significant losses. According to data from CoinMarketCap, DOT dipped by 8.54% over the last seven days wiping out all gains of an earlier recovery. However, despite this downtrend, renowned market analyst Ali Martinez has presented a strong bullish case for the altcoin. Related Reading: Polkadot (DOT) Must Retest Crucial Support To Sustain Uptrend Details Polkadot Prepares For Major Price Breakout In a recent X post, Martinez shared an exciting prediction for the DOT market indicating a potential price surge on the horizon. According to the crypto market expert, Polkadot’s current price pattern suggests the token is primed for a significant price breakout. This bullish projection is based on the formation of a bull pennant on the DOT daily trading chart. For context, the bull pennant is a continuation pattern in technical analysis that signals the potential for strong upward price movement after a period of consolidation. Based on the image above, the bull pennant pattern begins with a flagpole represented by a strong price uptrend which indicates a strong buying momentum by Polkadot investors in November 2024. After this price surge, the pennant follows which displays a price consolidation in a symmetrical triangle as seen from December 2024-present. This price movement indicates a temporary imbalance between buyers and sellers marked by declining trading volume. The bull pennant is complete when a price breaks above the upper trendline of the pennant, often accompanied by a surge in trading volume. The breakout signals a continuation of the prior price surge and usually results in a price move equal to the length of the flagpole. According to Ali Martinez, if Polkadot achieves a successful breakout from its current structure, the altcoin could trade as high as $17 in relation to its price rally in November. Interestingly, this price surge would represent a 167.29% profit on DOT’s current market price. Notably, Polkadot could still encounter substantial resistance on this projected bullish breakout. Importantly, market bulls should prepare to push past the $10.5 price zone which previously halted DOT’s initial price rally in November. Related Reading: XRP Rich List: Top 20 Wallets Control Over 50% Of Supply, But Whos Number 1? DOT Price Overview At the time of writing, Polkadot trades at $6.36 following a slight 0.28% gain in the past 24 hours. Meanwhile, the asset’s trading volume has dipped by 26.42% and is currently valued at $142.76 million. Over the last month, DOT has recorded a 9.03% demonstrating a stronger selling pressure in recent weeks even amidst its price consolidation. Nevertheless, the DOT community remains 87% bullish with a robust confidence in the coins long-term profitability. Aside from Ali Martinez, other crypto analysts with X usernames jrcryptex and Philakone are betting on an immediate price gain by the altcoin. Featured image from Dreamstime, chart from Tradingview
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