Polkadot’s Falling Wedge Breakout Suggests Potential for Mid-Term Bullish Momentum Amid Market Uncertainty
The post Polkadot’s Falling Wedge Breakout Suggests Potential for Mid-Term Bullish Momentum Amid Market Uncertainty appeared on BitcoinEthereumNews.com.
Polkadot (DOT) has shown signs of mid-term bullish momentum following a significant breakout from a falling wedge pattern, amidst mixed market sentiment. Trading volume surged by 88.09%, indicating strong investor interest, though future performance remains uncertain as technical indicators send mixed signals. “Increased network activity is largely driven by Polkadot’s parachains rather than the native chain,” noted a recent report from COINOTAG. Polkadot’s recent falling wedge breakout hints at mid-term bullish potential, yet mixed indicators suggest caution for investors eyeing DOT’s future. Falling wedge breakout: Will the bulls take charge? Polkadot has recently been trading within a bullish falling wedge pattern, indicating a potential price reversal after a downtrend. Following a short-term rally, DOT has gained significant bullish momentum, successfully breaking above the critical resistance level of $5.0. This movement signifies a challenge to the descending trendline, indicating that if DOT can maintain this upward trajectory, it may target the next resistance level at $9.07. Should the momentum persist beyond this point, the psychological mark of $10.31 could become the next focus for bulls. However, should the price fail to hold above the falling wedge pattern, a retest of the $5.0 support level and potentially lower prices could ensue. Source: X According to Cryptowaves, Polkadot’s 24-hour Relative Strength Index (RSI) has shown a rise to 45.64, increasing to 56.81 on the 4-hour chart, indicating heightened buying pressure alongside elevated trading volumes. Data from TradingView also supports this, revealing short-term moving averages (10-20 EMA/SMA) reflecting bullish momentum, while mid- to long-term averages suggest potential resistance. The current Long/Short Ratio of 2.64 further underscores the prevailing bullish sentiment among investors. Source: Coinalyze A look into the on-chain metrics Recent data from Coinalyze highlights a 6.7% decrease in DOT’s 24-hour Open Interest. Interestingly, according to DefiLlama, the DeFi activities within the Polkadot ecosystem…
Filed under: News - @ February 23, 2025 9:15 am