As a seasoned crypto investor with over a decade of experience in the market, I’ve seen my fair share of bullish and bearish trends. The current situation with Polkadot (DOT) has caught my attention due to the potential for a significant price breakout.
The cost of Polkadot might be gearing up for a significant upward surge, as a seldom-seen pattern, which started shaping up in August, is almost ready to conclude.
On November 8th, the cryptocurrency Polkadot (DOT) was being traded at $4.30 following a four-day rise. This digital asset has increased by 18% since its lowest point this year, suggesting that it’s getting close to entering a bull market.
As a cryptocurrency analyst, I find myself optimistic about Polkadot, despite some perceived weaknesses in its fundamentals. One of the key factors driving this bullish sentiment is the formation of a falling wedge pattern since August 1st. This technical pattern, when broken out of, often indicates a significant price increase.
In a 1DTF (One Day Time Frame), the falling wedge pattern might be breaking, indicating a potential increase. If this breakout is successful, the price could rise towards the range of $9 to $10 over the next few days.
— Globe Of Crypto (@GlobeOfcrypto1) November 8, 2024
One significant factor driving the potential increase in Polkadot’s price could be its new link to networks such as Ethereum, Optimism, Arbitrum, Base, and Binance Smart Chain, facilitated by Hyperbridge. This connection empowers users to transfer assets smoothly across these platforms without needing intermediaries.
Currently, there’s evidence that participation in the futures market for DOT is increasing noticeably. Open interest for DOT reached over $269 million, which is its highest point since June 17. After hitting a low of $179 million in September, it has experienced a significant recovery.
Nonetheless, one significant hurdle faced by Polkadot is its limited appeal among developers. Consequently, the expansion of its ecosystem has been rather sluggish compared to more recent platforms such as Basis and Sui.
Polkadot price analysis
Over the last several months, the daily graph indicates that the DOT price has mainly stayed within a narrow band. During this timeframe, it consistently hovered under both the 50-day and 100-day moving averages.
As an analyst, I’ve noticed a promising development: the asset has been forming a falling wedge pattern, which is approaching its confluence level. This occurrence, coupled with the fact that technical indicators like the Relative Strength Index (RSI) and Stochastic are trending upward, suggests that we might be on the verge of a bullish breakout for the coin soon.
Should this event transpire, the price of Polkadot could potentially surge to $7.77, marking its highest peak since May 27 and hitting the 50% Fibonacci Retracement point. This translates to a significant 76.50% increase from its current value. However, this prediction could prove invalid if the token drops below this month’s lowest point at $3.66.
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2024-11-08 18:16