Sunday , 10 November 2024
Home Cryptocurrency Polkadot (DOT) Forms Rising Wedge Pattern, Bullish Or Bearish?
Cryptocurrency

Polkadot (DOT) Forms Rising Wedge Pattern, Bullish Or Bearish?

Polkadot (DOT) Forms Rising Wedge Pattern, Bullish Or Bearish?

Polkadot (DOT), a popular cryptocurrency in the blockchain space, has been making waves with its innovative approach to interoperability and scalability. However, like any financial asset, its price movement is subject to various technical analysis patterns, one of which is the rising wedge chart pattern.

The formation of a rising wedge pattern on DOT’s price chart suggests that despite its recent upward trajectory, there could be a downturn on the horizon. Traders and investors often watch for confirmation signals such as a break below the lower base of the wedge to confirm the pattern’s validity and anticipate potential selling pressure.

Currently, the price of DOT is down by -0.13%, trading at about $7.13, with a market capitalization of over $10 billion and a trading volume of over $153 Million as of the time of writing. Although its market capitalization is down by 0.39%, its trading volume is up by 0.34% in the past day.

With the help of the 100-day Simple Moving Average (SMA), and Relative Strength Index (RSI), this analysis was carried out using both the 4-hour and daily timeframe.

Analytical View Of DOT’s Current Price Condition

Currently, in the 4-hour chart, DOT is still moving in a consolidation manner, with the upper base and the lower base of the wedge building up momentum below the 100-day simple moving average.

DOT

The 4-hour relative strength index is signaling that the price of DOT might break below the lower base of the wedge as the RSI line is seen trending a bit below the 50% level. From this RSI formation, it can be suggested that if DOT breaks below the wedge, it will begin to move downward toward the closest key support level.

Meanwhile, in the 1-day chart, DOT’s price is seen trending within the wedge but close to the lower base. The 1-day RSI also suggests that DOT might go bearish as the RSI line is attempting to cross below the 50% level. From this RSI formation, it is advised that investors should watch out for a break below the wedge before taking any sell positions.

DOT

Potential Price Action In The Event Of A Breakout

Presently, the crypto asset’s price is still moving within the wedge, and DOT will begin to decline in the direction of the $4.8 support level in the event that there is a breakout below the wedge. If the price falls below the aforementioned level, it might perhaps fall further to test the $3.5 support level.

On the other hand, if the price reverses course and breaks above the wedge’s upper base, it will begin to rise toward the $9,8 resistance level. Should it break above this level, Polkadot will go higher to test the $11.9 resistance level. In addition, DOT might see a stronger rise to test more significant levels if it closes above $11.9.

DOT

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

SEC Shake-Up: Pressure Builds for Gensler’s Immediate Resignation

The American Securities Association is urging SEC Chair Gary Gensler to resign...

SEC Commissioner Mark Uyeda Backs Trump Pro-Crypto Stance As Gensler’s Reign Nears End

Mark Uyeda, a commissioner at the US Securities and Exchange Commission (SEC),...

Can The Donald Trump Win Drive Bitcoin Price To $170,000 This Cycle?

The victory of Donald Trump in the US presidential election has been...

Crypto Fundraising Soars to $1.76B in October, Highest Since November 2023

Crypto exchanges dominate top deals in the financial sector, including Kraken and...