Polkadot (DOT) Prints Classic Bullish Falling Wedge Big Breakout Imminent
In an update on X, crypto analyst Jascrypto pointed out that Polkadot (DOT) is currently forming a textbook bullish falling wedge pattern on the daily chart. This technical setup is often associated with a potential trend reversal, signaling the end of a downtrend and the beginning of a bullish breakout. As DOT continues to consolidate within the narrowing bounds of the wedge, market participants are starting to take notice.
The structure suggests that bearish momentum may be weakening, allowing buyers to step in. With volume expected to increase upon a breakout, this pattern could mark a pivotal shift for DOT and spark a strong upside move, potentially starting a new bullish phase.
Why The Polkadot Falling Wedge Is Bullish
Crypto analyst Jascrypto recently highlighted that Polkadot has completed a breakout from a multi-month falling wedge pattern. Falling wedges are typically viewed as reversal patterns, and DOTs successful breakout suggests that downward pressure may be easing after months of consolidation. This structural shift reflects growing optimism and signals that the asset could be preparing for a larger upward trend.
Jascrypto pointed out that DOT is currently testing the 100-day and 200-day Exponential Moving Averages (EMAs), key technical levels that often act as strong resistance in bearish conditions. He emphasized that a decisive daily close above these EMAs would validate the breakout and signal a shift in market sentiment.
According to Jascrypto, if Polkadot maintains momentum and closes above these critical levels, it may pave the way for a rally toward the $5.5 to $6.0 range in the near term. This move would mark a significant recovery phase for DOT, attracting fresh bullish interest from investors.
In an alternative scenario, Jascrypto noted that the worst-case outcome might see Polkadot dipping as low as $3.120 on higher timeframes. However, he added that such a move could set the stage for a much stronger rebound, propelling the price above the $7 mark once momentum returns.
Momentum Indicators Lean Bullish Is DOT Ready To Run?
Momentum indicators are beginning to align in favor of the bulls, offering promising signals that Polkadot may be gearing up for a meaningful move higher. The 4-hour Relative Strength Index (RSI) has rebounded from oversold territory, hovering near the midpoint around 50. This shift indicates that bearish momentum is fading, and buyers may be gradually regaining control.
Adding to the optimistic trend, the 4-hour Moving Average Convergence Divergence (MACD) has shown a bullish crossover, where the MACD line crosses above the signal line. A move that often marks the beginning of a new uptrend or a pause in prior downside pressure. Combined, the RSIs recovery and the MACDs bullish signal suggest that DOTs momentum is shifting favorably, setting the stage for a potential breakout continuation if price action remains strong.
Read more: https://www.newsbtc.com/news/polkadot-dot/polkadot-bullish-falling-wedge/
Text source: NewsBTC
