- Polkadot’s price rose double digits last week, but the past 24 hours have been bearish.
- Most figures pointed to a price increase, which could result in a break from a bullish pattern.
After a week of promising price increases, Polka dot [DOT] bears took control as the price fell in the last few hours. However, there was more to it as a bullish pattern formed on the token’s price chart.
Let’s see if DOT can break above the pattern soon.
Polkadot’s upcoming meeting
CoinMarketCaps facts revealed that Polkadot witnessed a price increase of over 13% in the past week. But the scenario changed in the last 24 hours as its value fell by more than 5%.
At the time of writing, DOT was trading at $4.57 with a market cap of over $6.6 billion, making it the 14th largest crypto.
The negative price action impacted the social metrics as weighted sentiment moved into the negative zone. This meant that bearish sentiment around the token increased.
Social volume also showed a gradual decline, reflecting a decline in popularity.
Source: Santiment
Meanwhile, ZAYK Charts, a popular crypto analyst, recently posted a tweetwhich highlights an interesting development. According to the tweet, a bullish falling wedge pattern appeared on the token’s 2-day chart.
The pattern emerged in early 2024 and since then DOT has consolidated within the pattern. At the time of writing it was showing signs of an outbreak.
If that happens, Polkadot could head towards $10 in the coming weeks or months.
Source:
Is an outbreak possible?
AMBCrypto then assessed the token’s on-chain data to figure out whether a breakout seemed likely. Our analysis of Santiment’s data showed that DOT’s trading volume fell along with its price.
This indicated that DOT could soon register greens.
Moreover, open interest also stopped. When the measure falls, it indicates a trend reversal.
Notably, while price action remained volatile, DOT development activity remained high, a front where DOT has dominated for several years.
Source: Santiment
Additionally, at the time of writing, Polkadot’s fear and greed index was in a ‘fear phase’. When that happens, it indicates that the likelihood of a price increase is high.
That’s why AMBCrypto checked his daily chart to better understand what to expect. The price of DOT recovered after reaching the lower bound of the Bollinger Bands.
Read Polka dot [DOT] Price prediction 2024-2025
Moreover, the Chaikin Money Flow (CMF) also registered an upswing, which looked bullish.
In case the token turns bullish, it should first test its resistance near its 20-day Simple Moving Average (SMA). A breakout above that level could trigger a rally.
Source: TradingView