Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Polkadot (DOT) Testing Falling Wedge Resistance: Will It Make a Breakout?

Polkadot (DOT) Testing Falling Wedge Resistance: Will It Make a Breakout?

CoinsProbeCoinsProbe2025/01/31 21:11
By:Nilesh Hembade

Date: Fri, Jan 31, 2025, 05:44 PM GMT

In the cryptocurrency market within the last few hours, major altcoins have been making impressive gains following Ethereum’s (ETH) breakout and a decline in Bitcoin (BTC) dominance, which now stands at 58.94%.

Following this, top altcoins , including Polkadot (DOT), are also gaining traction, showing noticeable upward momentum.

Polkadot (DOT) Testing Falling Wedge Resistance: Will It Make a Breakout? image 0 Source: Coinmarketcap

However, a promising technical pattern suggests that a potential bullish reversal could be on the horizon, as highlighted by chart analyst @bitamberly .

Analyst Insight

According to analyst , DOT is forming a falling wedge pattern on the 8-hour timeframe. This is considered a bullish technical structure that often precedes strong upward moves. The price is currently trdaing at $6.40 level and testing the 50-period moving average (MA 50) and approaching the descending wedge resistance.

Polkadot (DOT) Testing Falling Wedge Resistance: Will It Make a Breakout? image 1 Polkadot (DOT) 8H Chart/ Source: @bitamberly (X)

A confirmed breakout from this pattern could trigger a strong rally, potentially pushing DOT toward key price levels. If the breakout is successful, DOT could first target $7.60, followed by a stronger resistance zone at $8.04, with the major breakout target sitting at $9.40.

On the downside, failure to break above the wedge resistance could result in another retest of the support zone near $5.58, where buyers may attempt to defend the price.

Final Thoughts

With Ethereum’s breakout acting as a major catalyst for the altcoin market and Bitcoin dominance dropping to under 59%, the market is showing strong bullish momentum. If DOT successfully breaks above the falling wedge resistance, it could see significant upside potential, following the broader altcoin rally.

However, traders should remain cautious and watch for confirmation signals before making any decisions.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Tech giants bounce back after AI disruption, S&P 500 nears record high

Share link:In this post: Last week, the largest tech firms in the US experienced huge challenges from Chinese AI, DeepSeek. Apple and Meta reported positive results, boosting the S&P 500. The Magnificent Seven’s price-to-earnings ratio is now 31.

Cryptopolitan2025/02/02 19:22

OpenAI launches o3-Mini as it fights back against DeepSeek

Share link:In this post: OpenAI has launched its o3-Mini AI model to fight back against DeepSeek’s latest model. The company mentioned in its blog post that the o3-Mini is the most cost-efficient model in their reasoning series. DeepSeek’s breakthrough caused a $1 trillion tech selloff while putting pressure on AI chip makers.

Cryptopolitan2025/02/02 19:22