A classic bull pennant pattern was seen on the Polkadot (DOT) daily chart. This is a pattern that usually indicates that the upward trend is continuing. Analysts state that DOT may break this pennant formation and reach the $17 level. DOT is currently trading at $6.3. However, amid overall market uncertainty, DOT must overcome both technical and fundamental challenges to achieve this breakthrough.
Polkadot Gathers Strength for Ascension
Although there are optimistic predictions that Polkadot will break the bull pennant formation, the price has not entered a strong uptrend yet. Over the last 24 hours, DOT continued to move sideways and its price fell 2.92% to $6.30.
24-hour trading volume decreased by 37% to $169.94 million, indicating that investor interest has waned and many investors are waiting for a possible breakout. DOT’s market cap currently stands at $9.71 billion. However, the recent low momentum suggests that the bulls may have difficulty pushing the price up.
Technical Analysis: Bullish Pennant Formation and Upside Potential
The bull pennant formation seen on the chart of DOT gives a positive signal for the bulls. This formation usually occurs after a strong price movement and an upward break is expected after a period of consolidation. The rise of DOT from $ 3.75 to $ 10.68 at the end of 2024 caused the formation of this formation.
When we look at the Fibonacci retracement levels, the important support and resistance levels are listed as follows:
The -$6.32 level formed a strong base as the 0.5 Fibonacci support and prevented the price from falling further.
-DOT needs to surpass the 0.618 Fibonacci resistance point at $7.16. If this level is broken, a rise to $10.68 and then to the $17 levels targeted by analysts may be possible.
-A symmetrical triangle formation is seen on the 1-hour DOT/USDT chart. This indicates that the price has been consolidating for a while and a major breakout is approaching. The direction of this breakout will depend on market momentum.
-A break of the upper trend line of the triangle could push the DOT price to $7.40 levels. However, there is a risk of a decline to $6.00 or lower if the lower trend line is broken.
Future Prospects: Critical Levels for Polkadot
Polkadot’s price is trading at $6.31 and technical analysis shows a gradual uptrend. However, there is uncertainty in the market and investors are waiting to clarify the direction of the trend. The Money Flow Index (MFI) indicator is at 32.54 and is close to the oversold zone. This indicates that the market’s interest in Polkadot may increase.
Polkadot Announces Critical 2025 Roadmap! DOT Price Targets…However, the low level of the MFI indicator indicates that sellers may take control even if the price rises. Therefore, investors need to carefully monitor market movements. If Polkadot can break the $7.16 level, the doors of a strong rise may be opened. However, if this level cannot be exceeded, the price may consolidate for a longer period of time and the risk of decline may continue.
