Polkadot Eyes $10: Wedge Formation Hints At Surge

The leading cryptocurrency, Polkadot (DOT), is currently witnessing a bearish trend, which is reflected in its responsive marketing activity. The token’s value has steadily decreased in recent months, entering a downward trend that has alarmed investors. This persistent decline has raised questions about whether DOT can maintain its current state or if it will continue to decline.

Still, a retrospective analysis by cryptocurrency analyst “Zayk Charts” gives DOT holders some hope. Zacks, a renowned expert in market forecasting, has identified a declining wedge pattern on the 2D timeline for DOT/USDT. This pattern is essential in technical analysis as it frequently indicates a potential reversal in a bearish trend.

A bullish indicator that points to a potential upward breakout is the falling wedge. The analyst thinks that the token may trade for as much as $10 if it breaks out of this wedge. Further evidence for this forecast comes from recent price movements, with DOT stabilizing at about $4.80, indicating a potential bottom.

“$DOT Failing Wedge Formation in 2D Timeframe Incase of Breakout, Next Target will be $10,” reads the tweet from Zachary Charts. The crypto community has taken notice of this succinct but impactful message, with discussions focussing on whether this signals the start of a bullish trend for the token.

If the token overcomes this obstacle, it might indicate a significant turnaround for the cryptocurrency. A rise to $10 would boost investor confidence and reestablish DOT as a strong contender in the crypto market.

Polkadot Set For Bullish Rally, RSI Confirms

The 4-hour relative strength index (RSI) analysis shows that the signal line has increased by more than 50% and is reaching 60%. This upward trend indicates rising purchasing pressure, implying that the asset class may continue its upward trajectory.

DOT maintains below the 100-day Simple Moving Average (SMA) after transitioning to the 1-day chart. Nevertheless, three bullish momentum candles have formed near the $4.23 price level. This development suggests that the bulls remain in charge, which might potentially be detrimental to the token.

Furthermore, the RSI signal line for the 1-day chart is rising from the oversold zone to 50%. This trend indicates that the bulls are gaining the upper hand over the bears, reinforcing the likelihood of a continued rally. When this article was written, the coin traded at $4.73, with a slight 0.21% decline in the past 24 hours.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.