Polkadot (DOT) has seen a price increase in the daily time frame as the crypto market rises. Some market watchers suggested the cryptocurrency is gearing up for a breakout, setting new targets for the short and medium term.
Polkadot breaks out of the falling wedge pattern
Polkadot has registered a 10.9% increase following market performance over the past week. DOT jumped from the $4.32 support zone to the $4.53 mark before rebounding, registering a daily gain of 4.8% in the early hours of Tuesday.
The cryptocurrency also saw a 56% increase in market activity, with a daily trading volume of $259.3 million. This rise has caused DOT to retest the upper trendline of a descending wedge pattern.
Market analyst CryptoBull360 declared that Polkadot is “getting ready for a massive breakout” from the bullish pattern after a long consolidation period. DOT has been moving within the falling wedge for the past seven months, consolidating between $4 and $4.8 since Black Monday in August.
The analyst noted that the token made a strong jump from the Point of Control (PoC) value zone, gaining 11% in the past three days. Today’s jump saw the token break above the pattern’s upper trendline and briefly stay above it.
CryptoBull360 expects a retest of March highs if the token successfully breaks out of the falling wedge. For him, a medium-term upside of 160% is imminent, which would target the annual high of $11.46.
Is DOT preparing to claw back $20?
Crypto analyst Ali Martinez suggested that Polkadot “could follow in Fantom’s footsteps.” According to the post, DOT’s graph looks similar to Fantom’s before its March performance.
Before the first-quarter rally, FTM rose twice to the top of its accumulation zone and reversed before continuing its 263% bullish run toward its annual high. If Polkadot were to follow suit, and the current pattern holds, DOT’s price could rise to $9.7 in the fourth quarter.
Following the surge, the cryptocurrency would face a pullback to the $6.5-$6.7 support zone before rocketing to $20 in the first quarter of 2025, a level not seen since April 2022.
Despite the bullish forecasts, some investors remain cautious about Polkadot. A crypto trader noted that DOT followed Bitcoin’s lead, as did most of the market. The cryptocurrency rose to its daily high of $4.53 as BTC retested the $67,000 resistance level.
However, DOT quickly fell to Monday’s levels as BTC was rejected from its resistance zone. The trader questioned DOT’s 24-hour trend and stated: “BTC stops pumping, DOT rises a few percent, while most things don’t rise, once it gets going the whole market drops and DOT immediately loses everything had won it before. .”
At the time of writing, DOT is trading at $4.42, up 2.2% on the daily time frame.
