Polkadot (DOT) Poised For A Move Past $12—Is Now The Time To Buy?

Christian Encila

1 year ago

3 mins read

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Following a long six-month corrective phase, Polkadot (DOT) is attracting interest once more; some analysts think the token might be about to undergo a major bullish reversal.

Among these, a market analyst referred to as “Worlds of Charts” notes that there has been an emerging pattern of a falling wedge at times interpreted as a sign of an imminent upward break.

Polkadot’s technical configuration has been consistently gathering steam. investors are attentively observing what might be a notable rise coming for the thriving altcoin.

$Dot #Dot Polkadot Is Exhibiting Signs Of Reversal After A Six-Month Corrective Phase. The Formation Of A Falling Wedge Pattern, Coupled With Pronounced Bullish Divergence On Key Indicators, Suggests A High Probability Of A Successful Breakout. Upon Confirmation, DOT May Target… pic.twitter.com/1JpVUM0oHJ

— World Of Charts (@WorldOfCharts1) September 25, 2024

As long as the bigger crypto market starts to revive, this prediction does not seem unreasonable because Polkadot is important for blockchain interoperability and has the potential to attract renewed investor attention.

Falling Wedge: Bullish Reversal Pattern

Among the most consistent technical indications for identifying reversals is the falling wedge formation. The token has been moving in two downward-sloping trends, therefore decreasing the price range.

The trajectory normally points to a declining bearish attitude; as the negative momentum fades, the likelihood of a breakout to the upside is more intense. For Polkadot, the trend has been developing over several months indicating that the token might be getting ready for a significant price ascent.

Polkadot market cap currently at $7.3 billion. Chart: TradingView

Added to this is the relative strength index, another familiar momentum indicator, that has recently made higher lows even as the price of DOT has trended lower.

Price and momentum divergence, which always indicates decreasing selling pressure, suggests bulls are about to reclaim control. The technical setup favors a rally despite expected volatility.

Price Growth Potential And Market Sentiment

Given that the token has increased 13% over the past week and shows a remarkable 2.47% growth just in the last 24 hours, Polkadot’s present market mood is rather positive.

These increases show a growing demand for DOT even if more general market conditions are yet unknown. Currently trading at $4.92, the cryptocurrency has a market capitalization of $7.51 billion and a minor increase in trading volume.

The optimistic projection for the next years is even more motivating. Should DOT breach its wedge formation, experts think the price may move toward the $12 resistance level.

Reaching that would be a major turn from the current decline in the token and would create conditions for even further increases in the next months.

Polkadot: Long-Term Projections

Looking ahead, Polkadot’s development promise seems even more remarkable. In six months, CoinCheckup projects a 311% price growth; over the next year, it forecasts a more impressive 425% climb.

These figures fit Polkadot’s continuous network changes, including new alliances and its emphasis on increasing its cross-chain capacity.

Featured image from Polkadot, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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