Polkadot Price Breaks Out of Falling Wedge Pattern, Targeting $7.00 Resistance

Polkadot price can be seen breaking out of the falling wedge pattern, an indication of a bullish rally ahead of it. Market analysts are keeping a close watch as the price approaches some key resistance levels to know the next major price action. By Olivia Stephanie. Updated Apr 13, 2023.

Key Insights:

Polkadot price can be seen breaking out of the falling wedge pattern, an indication of a bullish rally ahead of it. Market analysts are keeping a close watch as the price approaches some key resistance levels to know the next major price action.

Polkadot Price Breaks Out of Falling Wedge Pattern

Polkadot price chart has revealed a falling wedge pattern pattern breakout which signals a bullish move ahead. A price move above the upper trendline of the wedge triggers an alteration of traders’ sentiment from negative to positive which creates an opportunity for future price gains.

Market analyst CW8900 has said that the breakout has happened near a strong support zone, which strengthens the bullish sentiment further. The rally has found support in the zone, represented by this green in the chart. The price has broken the wedge now and is looking at key resistance levels.

Polkadot Network Activity and Price Correlation

In addition to technical chart analysis, Polkadot network activity shows some intriguing trends. Despite the recent price decline from its recent highs, network transactions have remained steady, with some notable surge in activity.

For instance, there was a huge spike in Polkadot daily transactions in the middle of February, with the number of daily transactions exceeding 45,000. This might suggest more Polkadot network usage by DeFi applications or token transfers.

Polkadot Set to Surge: Key Resistance, ETF Launch, and DeFi Boost

Polkadot’s first major resistance is around $7.00. This action is expected to result in selling wall on this level on which traders will place bid orders to sell at any price at this level.

With strong trading volume, if Polkadot succeeds in breaking over the $7.00 resistance, the next target would be around $11.00.

Therefore, if the price continues to break out of the support zone around $4.50 and continues its downward momentum, then the bearish scenario can return and this can push the downward momentum even more. It is only if the price breaks above $7.00 and moves upward towards $11.00, then the upward momentum can gain some footing and move upward more.

Two major financial institutions Nasdaq together with Grayscale Investments are currently advocating for the establishment of Polkadot Exchange-Traded Funds (ETFs). Nasdaq submitted a request to the United States Securities and Exchange Commission for approval to list 21Shares’ spot Polkadot ETF on the exchange for trading as well as tracking DOT’s spot market prices.

The market now displays considerable interest in Polkadot following this new development. The ETF filing announcements about DOT led to a minor price increase which triggered positive sentiment across markets.

Furthermore, the community has approved the DeFi Singularity initiative, which is now fueled with 795K DOT to propel DeFi growth. This will expand liquidity, accessibility, and interoperability between blockchain ecosystems as significantly as they come.

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.