Polkadot Breaks Out of Falling Wedge Pattern
Last week, Polkadot (DOT) saw a significant price increase, breaking out of a falling wedge pattern that had been forming since March. The price of DOT reached $6.47, marking a 7-day high and signaling a positive trend for the altcoin.
Support from Bull Market Boosts Polkadot
A falling wedge pattern is characterized by two downward sloping trend lines, with the upper line acting as resistance and the lower line as support. When an asset breaks above the upper trend line of a falling wedge pattern, it is considered a bullish sign. This breakout indicates that buyers are gaining strength over sellers, leading to a potential uptrend in prices.
Polkadot broke above the upper trend line on July 13 and has been steadily climbing since then. Additionally, the relative strength index (RSI) for Polkadot has been trending upwards, reaching 57.81. This confirms the increase in buying pressure compared to selling activity, further supporting the bullish momentum for DOT.
Predicting the Future Price of DOT
The bullish sentiment for DOT has been strong since July 11, with the Parabolic Stop and Reversal (SAR) indicator on the 1-day chart reflecting this positivity. The SAR indicator level has been below the DOT price since July 11, suggesting an upward trend for the altcoin.
The Parabolic SAR indicator helps to identify trend direction and potential reversal points. When the points are below the price, it indicates an upward trend, signaling a continued rise in prices. In contrast, points above the price suggest a potential downtrend.
If the demand for Polkadot continues, its price may rise above $6.57. However, if the bullish trend loses momentum, the price could drop to $6.15.
In conclusion, Polkadot’s recent breakout from the falling wedge pattern and bullish market support indicate a positive outlook for the altcoin’s price. Traders and investors will closely monitor key indicators like the RSI and SAR to gauge future price movements.
