Analysts predict Polkadot is ready for a major bullish reversal, with
strong patterns indicating imminent upward momentum
Several altcoins have surrendered their recent gains this week amid rising
geopolitical tensions, with Polkadot (DOT) facing similar challenges. The
latest market correction pulled the altcoin’s price down to $4.04, a drop of
over 14% in just three days.
At times like this, it’s important to take a step back and examine some
fundamentals and traders’ sentiment in the face of popular industry analysts’
conclusions.
Polkadot On-Chain
One of the most important on-chain metrics that track the network’s activity
over time is the number of daily active users and new users joining the
ecosystem.
While the number of new accounts on Polkadot has remained relatively the same
since May last year, the number of active users has increased by more than
25%.
Source: Subscan
The amount of DOT transferred daily has also increased significantly during
this period, showing that the network is processing larger transfer volumes.
Source: Subscan
DOT’s Imminent Breakout – Are Investors Ready?
One analysis indicates that DOT is poised for a significant breakout. The altcoin
appears to be approaching the conclusion of its accumulation phase and could
potentially be on the verge of breaking out of a long-standing falling wedge
pattern.
According to its findings, recent movements in major large-caps suggest that
DOT is poised to follow this trend, making it only a matter of time before it
experiences a substantial upward shift. The projected targets for this
breakout, indicating key resistance levels, are set at $11.83, $18.41, $26.30,
and $37.53.
“With over 600 days below the key zone, Polkadot is gearing up for a major
push.”
Source: X
Another market observer, Lucky, also highlighted a similar promising outlook for DOT in his latest
technical analysis. He said that the asset is nearing the end of its yearly accumulation
phase, which could propel DOT’s price to “take off” soon.
An Outrageous Scenario Based on Historic Similarities
According to investment firm TradingShot’s latest analysis, DOT may be on track for a significant price surge, potentially reaching
$200 by the end of 2025. The analysis suggests that Polkadot is following a
pattern similar to Ethereum Classic’s (ETC) 2018-2021 cycle.
As shown on a one-week chart, both assets exhibit nearly identical RSI
sequences. Lower highs and double tops lead into a bear market, followed by an
RSI bottom that sparks a breakout above the one-week MA50 and the 0.5
Fibonacci retracement level.
Source: X
Currently, Polkadot’s RSI is hovering around 40.00, a key level that marked
the start of a parabolic rally in Ethereum Classic. If Polkadot mirrors this
cycle, it could aggressively rise toward the 1.5 Fibonacci extension, hitting
$200 by late 2025.
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