- Polkadot price has increased by double digits in the past week, but the last 24 hours have been bearish.
- Most indicators point to an increase in prices, which could lead to a breakout of an uptrend.
After a week of promising price increases, Dots (DOT) Bears took control of the market as its price declined in the past few hours. However, the story was more complex as a bullish pattern formed on the token’s price chart.
Let’s see if DOT can surpass the model in the near future.
The Next Polkadot Rally
Data from CoinMarketCap revealed that Polkadot’s price has increased by more than 13% over the past week. But the scenario has changed in the past 24 hours, with its value dropping 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 its social indicators as its weighted sentiment fell into the negative zone. This means that the bearish sentiment around the token has increased.
His social volume has also seen a gradual decline, reflecting a decline in his popularity.
Source: Santiment
Meanwhile, ZAYK Charts, a popular crypto analyst, recently published a tweethighlighting an interesting development. According to the tweet, a bullish falling wedge pattern has appeared on the token’s 2-day chart.
The pattern emerged in early 2024 and since then, DOT has been consolidating within the pattern. At press time, it was showing signs of a breakout.
If this happens, it could push Polkadot towards $10 in the coming weeks or months.
Source: X
Is an escape possible?
AMBCrypto then evaluated the token’s on-chain data to determine if a breakout seemed likely. Our analysis of Santiment’s data revealed that DOT’s trading volume dropped alongside its price.
This indicates that the DOT may soon record greens.
Additionally, its open interest has also stopped. Whenever the metric goes down, it portends a trend reversal.
It is worth noting that while price action has remained volatile, DOT development activity has remained high, a front on which DOT has dominated for several years.
Source: Santiment
In addition to this, at the time of writing, Polkadot fear and greed index was in a “fear” phase. Whenever this happens, it suggests that the chances of a price increase are high.
Therefore, AMBCrypto checked its daily chart to get a better understanding of what to expect. DOT price bounced back after touching the lower boundary of the Bollinger Bands.
Read Polkadot (DOT) Price Prediction 2024-2025
Additionally, Chaikin Money Flow (CMF) also saw an increase, which appears bullish.
If the token turns bullish, it must first test its resistance near its 20-day simple moving average (SMA). A break above this level could trigger a rally.
Source: TradingView
