Polkadot price has recently experienced a remarkable rally, going 150% up from its previous lows. As the price action cools off, crypto analysts follow some technical patterns and levels that could indicate the potential for further gains.
Price Action Showed Bearish to Bullish Sentiment
World of Chart analyst presented an analysis of Polkadot’s price chart showing a breakout from the long-term descending trendline. This shift marks a change in market dynamics, moving from a bearish to a bullish sentiment.
The break above this trendline signifies that sellers are losing their grip, while buyers are starting to assert control. This change in momentum is critical for traders looking for bullish setups.
The key resistance zone is identified, marked by a red rectangular box on the chart. This zone has historically posed challenges for price action, indicating strong selling pressure at these levels.
However, the recent breakout above this area is a strong signal of bullish intent, showing the buyers’ commitment. If the price were to retrace, this zone could now serve as a support level, providing traders with a potential buying opportunity.
The emergence of a falling wedge pattern during the earlier stages of the rally has been instrumental in signaling a potential reversal. This bullish pattern typically indicates a consolidation phase followed by a strong breakout.
With the price breaking out of this wedge, it reinforces the bullish outlook and suggests that the upward momentum could continue. Traders should keep an eye on similar patterns in the future for further signals.
Potential Upside
On the chart, the analyst anticipated an upward trajectory for Polkadot’s price. This projection suggests that if momentum maintains its current pace, the price could target significantly higher levels.
The bullish thesis hinges on continued buying pressure, and should the market conditions remain favorable, we could witness a substantial price increase in the coming weeks.
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After the substantial rally following the breakout, the Polkadot price is currently experiencing a cooling-off period. It’s common for assets to pull back to retest previous resistance zones after a breakout. The analyst predicted that if a successful retest occurs on the previously established resistance zone, this could catalyze the DOT price to move toward higher price targets of $30.
