Polkadot Shows Bullish Divergence Amid Heightened Efforts to Exit Descending Channel
Polkadot (DOT) has shown significant efforts to leave a descending channel that connects lower and lower highs.
This, coupled with bullish divergence, shows that the twentieth-largest cryptocurrency based on market cap might be gearing up for a surge towards the psychological price of $5.5 and above.
Since Polkadot is holding the $4 zone, this cements its quest to leave the descending channel since buyers continuously buy at this strong support level.
Polkadot is also trading above the 50-day moving average (MA), which is bullish.
Per CoinGeckos data, DOT was up by 8.5% in the past two weeks to hit $4.12 at the time of writing.
Is Polkadots Annual Accumulation Phase Coming to an End?
Polkadot might be experiencing the calm before the storm as the altcoin seeks to exit its accumulation phase, which has taken a year.
Market analyst under the psydounym Lucky acknowledged, DOT is approaching the end of its yearly accumulation phase and is poised to break out of a long-awaited descending triangle pattern. Weve witnessed significant movements in large caps over the past few weeks. Its only a matter of time before $DOT takes off.
Based on this analysis, DOT might be building bullish momentum that will take it to highs of $12.
Meanwhile, Polkadot is eyeing a new era of enhanced scalability and efficiency thanks to its Agile Coretime upgrades, part of the ongoing Polkadot 2.0 upgrade.
Polkadot 2.0 will shift the network from a chain-based ecosystem to an application-based ecosystem, with the coretime marketplace anticipated to lower developers entry barriers.
Text source: ZyCrypto
