Polkadot (DOT) Forms Bullish Falling Wedge Pattern, Targeting $5.5 to $6

In an update on X, crypto analyst Jascrypto pointed out that Polkadot (DOT) is currently forming a textbook bullish falling wedge pattern on the daily chart. This technical setup is often associated with a potential trend reversal

Crypto analyst Jascioerto highlighted that Polkadot (DOT) is forming a bullish falling wedge pattern on the daily chart. The crypto price has also been testing the 100-day and 200-day Exponential Moving Averages (EMAs). A daily candle close above these EMAs would be a key indicator of a bullish shift.

As Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio,, the crypto analyst stated that if Polkadot manages to close daily candles above the 100-day EMA and the 200-day EMA, it could continue its recovery and rally towards the $5.5 to $6.0 range.

In another possible scenario, if Polkadot experiences a deeper decline and touches the $3.120 level on higher timeframes, it could set the stage for a stronger rebound, potentially propelling the price above the $7 mark as momentum returns.

Polkdot has completed a breakout from a multi-month falling wedge pattern, which is typically associated with a potential trend reversal, signaling the end of a downtrend and the beginning of a bullish breakout. The structure suggests that bearish momentum may be weakening, allowing buyers to step in. With volume expected to increase upon a breakout, this pattern could mark a pivotal shift for DOT and spark a strong upside move, potentially starting a new bullish phase.

As the cryptocurrency market continues to be volatile, it's crucial for traders to rely on technical analysis and pay attention to key indicators to make informed decisions. The 4-hour Relative Strength Index (RSI) has rebounded from oversold territory, now hovering around the midpoint at 50. This shift indicates that bearish momentum is fading, and buyers may be gradually regaining control.

Furthermore, the 4-hour Moving Average Convergence Divergence (MACD) has shown a bullish crossover, where the MACD line crosses above the signal line. A move that often marks the beginning of a new uptrend or a pause in prior downside pressure. Combined, the RSI’s recovery and the MACD’s bullish signal suggest that DOT’s momentum is shifting favorably, setting the stage for a breakout continuation if price action remains strong.