Polkadot (DOT) saw its price surge on the daily time frame as the cryptocurrency market surged. Some market observers have suggested that the cryptocurrency is preparing for a breakout, setting novel targets in the tiny and medium term.
Polkadot is breaking out of a falling wedge pattern
Polkadot has surged 10.9% in the past week, tracking the market’s performance. DOT jumped from the $4.32 support zone to $4.53 before rebounding with a 4.8% daily gain early Tuesday.
The cryptocurrency also saw a 56% enhance in market activity, recording a daily trading volume of $259.3 million. This enhance forced the DOT to retest the upper falling wedge trend line.
CryptoBull360 market analyst he stated that Polkadot is “preparing for a massive breakout” from a bullish pattern after a long period of consolidation. DOT has been moving within a falling wedge for the past seven months, consolidating in the $4-4.8 range since August’s Black Monday.
The analyst noted that the token has bounced strongly from the Point of Control (PoC) value zone, rising 11% in the last three days. Today’s jump caused the token to break above the upper trend line of the formation, stopping above it for a while.
CryptoBull360 expects a retest of the March highs if the token successfully breaks out of the falling wedge. According to him, a 160% enhance in the medium term is inevitable, reaching an annual high of $11.46.
Is DOT preparing to recover the $20?
Crypto analyst Ali Martinez suggested that Polkadot could “follow in Fantom’s footsteps.” The post shows that DOT’s chart looks similar to Fantom’s chart prior to the March results.
Prior to the Q1 rally, FTM rallied twice to the upper end of its accumulation zone and then recovered before mounting a 263% bullish rally toward its yearly high. If Polkadot follows suit and the current pattern continues, the DOT price could rise to $9.70 in the fourth quarter.
Following the surge, the cryptocurrency will face a pullback to the $6.5-$6.7 support zone before rapidly rising to $20 by the first quarter of 2025, a level not seen since April 2022.
Despite bullish forecasts, some investors remain cautious about Polkadot. Cryptocurrency trader excellent that DOT followed Bitcoin’s lead, as did most of the market. The cryptocurrency rose to an intraday high of $4.53 as BTC retested the $67,000 resistance level.
However, DOT quickly dropped to Monday’s levels as BTC was kicked out of its resistance zone. The trader questions DOT’s 24-hour trend, stating: “BTC stops pumping, DOT goes up a few percent while most things don’t go up, as soon as it starts going, the whole market goes down and DOT immediately loses everything it previously gained.”
At the time of writing, DOT is trading at $4.42, up 2.2% on the daily time frame.
