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- Polkadot’s Falling Wedge and Cup and Handle patterns signal a bullish breakout, targeting $18-$20 in 2025.
- DOT price consolidates near 0.618 Fibonacci support, aligning with bullish momentum and a potential $9-$20 rally.
- Strong volume and breakout above key resistance could propel Polkadot from $9.50 to $20 as bullish patterns align.
Polkadot’s (DOT) price shows signs of a bullish reversal with multiple technical indicators aligning. The 1D chart shows a Falling Wedge, a pattern that often signals strong price movements. This mid-term correction appears to be ending, setting the stage for a breakout.
$DOT 1D chart
— CryptoBullet (@CryptoBullet1) December 31, 2024
This mid term correction is coming to an end
I like this Falling Wedge and I think #DOT will break out of it 📈
Standard Falling Wedge target is $9-9.5 but as you know I’m expecting BTC.D to collapse in Q1 📉
So I think we should zoom out and aim higher
🎯 My… pic.twitter.com/gs5iGNiQ0h
DOT Falling Wedge and Fibonacci Levels
The Falling Wedge pattern highlights weakening bearish pressure. Converging trend lines and reduced volume suggest a buildup in bullish momentum. The price is consolidating near the 0.618 Fibonacci retracement level, a critical support zone. This level often serves as a springboard for upward moves.
The 100-day moving average (MA100) sits below the price structure, offering additional support. A breakout above the upper wedge line could trigger a rally toward higher resistance levels.
Cup and Handle Pattern Adds Bullish Potential
Beyond the Falling Wedge, Polkadot is forming a Cup and Handle pattern on higher time frames. This rare formation suggests a long-term bullish outlook. The cup represents a rounded bottom, indicating accumulation, while the handle indicates a consolidation phase. If confirmed, this pattern could propel DOT to new highs in 2025.
The potential upside from the Cup and Handle aligns with the $18-$20 target zone. Historical data shows this pattern often leads to sustained rallies, especially in strong market conditions.
Initial and Extended Targets
The immediate target for the Falling Wedge breakout is $9-$9.50. This range coincides with horizontal resistance from previous price action. However, if Bitcoin dominance weakens in Q1 2025, altcoins like DOT could see accelerated gains. The extended target of $18-$20 aligns with the Cup and Handle pattern’s breakout potential.
Key Levels and Volume Requirements
DOT must break the wedge’s upper trendline with strong trading volume to confirm the breakout. Without volume, the move could fail. Traders should also watch for support at $5.70, which could be retested if the breakout delays. These indicators suggest Polkadot is primed for a significant rally.