- The falling wedge breakout signals bullish potential, targeting $24 with $10.88 as key resistance.
- Positive metrics, including oversold RSI and strong social sentiment, reinforce Polkadot’s rally potential.
Polkadot [DOT] has broken out of its falling wedge pattern on the weekly timeframe, a critical signal that often precedes significant bullish rallies.
Trading at $6.83 at press time, with a 1.98% decrease at press time, the cryptocurrency’s breakout and retest phase presents a promising opportunity for traders. The next key question is whether DOT can sustain this momentum and rally toward its midterm target of $24.
DOT’s breakout and price prediction
The falling wedge breakout on Polkadot’s chart highlights strong potential for a bullish reversal. The price is now facing its first major resistance at $10.88, with a midterm target at $24.
Additionally, the recent retest of the breakout level strengthens the technical outlook, suggesting that buyers are entering at critical levels. Therefore, DOT’s trajectory appears poised for a substantial upside, provided the momentum persists.
Source: TradingView
Analyzing the stochastic RSI and moving averages
Technical indicators further support Polkadot’s bullish potential. The stochastic RSI shows oversold conditions, with values near 3.03 and 4.01, indicating a potential price rebound in the short term.
Additionally, while the moving average (MA) crossover on the daily chart hints at short-term consolidation, it also suggests that DOT may soon reverse its downward trend.
Together, these indicators point to a promising outlook for the cryptocurrency in the coming weeks.
Source: TradingView
Social volume data, at 105, indicates rising interest in Polkadot, as community engagement across platforms continues to increase. This heightened activity, visible through consistent spikes, often correlates with a renewed interest in the asset.
Therefore, the narrative surrounding Polkadot’s bullish potential continues to grow, creating a positive feedback loop for both sentiment and price action.
Source: Santiment
DOT derivatives market supports the bullish outlook
Polkadot’s total liquidations show $207.51K in long liquidations compared to $177.75K in shorts, signaling growing confidence among long traders. Furthermore, the OI-weighted funding rate remains positive at 0.01%, reinforcing bullish sentiment.
These metrics indicate that Polkadot is gaining strength in the derivatives market, further solidifying its upward potential.
Source: Coinglass
Read Polkadot [DOT] Price Prediction 2024-2025
With its falling wedge breakout, bullish technical indicators, and growing social and derivatives momentum, Polkadot appears well-positioned for a rally.
While overcoming the $10.88 resistance is essential, the midterm target of $24 is achievable if the current momentum continues. Polkadot is undoubtedly on track for a significant breakout.
