Polkadot Price Forecast: DOT edges closer to a 35% upswing from a broadening wedge pattern

  • Polkadot price is consolidating in a broadening wedge pattern suggesting a bullish breakout shortly.
  • A successful breach of this setup indicates a 35% surge to record levels at $50.
  • DOT’s on-chain metrics show considerable growth adding credence to its bullish outlook.

Polkadot price has recovered from the selling frenzy and is climbing higher in hopes of establishing a new uptrend. The consolidation since the DeFi token’s all-time high at $42.39 has resulted in a descending broadening wedge pattern.

Polkadot price poised for a new all-time high

Polkadot price has been on a decline since February 20, forming lower highs and lower lows. Joining these swing highs and swing lows with trendline results in a descending broadening wedge pattern.

This technical setup forecasts a 35% upswing, determined by measuring the distance between the pivot high and the latest swing low and adding it to the breakout point at $36.40. 

This target puts DOT at $50, a new all-time high.

DOT/USDT 4-hour chart

DOT/USDT 4-hour chart

Adding credence to this bullish scenario is Polkadot’s 125% increase in on-chain volume from $3.26 billion to $7.35 billion between February 22 and 24.

Moreover, a 33% drop in social volume in the same period is also incredibly positive from a counter-sentiment perspective.

Polkadot on-chain and social volume chart

Polkadot on-chain and social volume chart

A similar uptrend can be witnessed with the developer activity index, which has swelled from 3.69 to 4.33 within the same time. Market participants consider this surge a bullish sign since a high developer activity suggests a possibility of the project’s new update or a developmental rollout.

Interestingly, DOT price has dropped 13% while these on-chain metrics saw substantial growth, thus creating a bullish divergence. 

These developments indicate Polkadot’s inevitable breakout from the consolidation pattern. In such a case, a four-hour candlestick close above the 127.2% Fibonacci retracement level at $37.56 will not only signal a breakout from the wedge but also the start of an uptrend.

Increased buying pressure here could propel the DeFi token to its intended target at $50.

Polkadot developer activity index chart

Polkadot developer activity index chart

Investors need to be aware that rejection at either $36.40 or the resistance barrier at $37.56 would be fatal. If this were to happen, DOT would re-enter the consolidation phase and slide to the 78.6% Fibonacci retracement level at $28.85.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Weekly Forecast: BTC price surges despite threat of crash to $36k

Bitcoin price shows lackluster performance after the recent crash, giving rise to the credibility of the run-up to $50,000. As the September 24 daily candlestick bathes in red, the chances of an uptrend continue to diminish.

More Bitcoin news

XLM Price Prediction: Stellar traps bulls as it targets $0.195

Since Wednesday, the Stellar (XLM) price has been paring back losses, but price action has already started to fade on XLM. Bulls cannot push the price above $0.30, and XLM price has startedto form a bull trap.

More Stellar Lumens News

Polkadot Price Prediction: DOT will hit $40 by October

Polkadot (DOT) bears are scrambling to cash in on their profits as price action for DOT reverses quite rapidly, with bulls overtaking control and pushing price action back toward levels achieved before the correction began. 

More Polkadot News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

China’s central bank cracks down on illegal financial activities from overseas cryptocurrency exchanges. The recent announcement marks the People’s Bank of China's (PBoC) strongest move against cryptocurrency mining and trading to date. 

More Cryptocurrencies News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast