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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano Price Prediction: ADA eyes $1 amid market-wide sell-off

Cardano price has failed to recover to pre-crash levels, hinting at a dearth of buying pressure. The recent short mania might cause ADA to dip into the demand barrier ranging from $0.98 to $1.07.

More Cardano news

Bitcoin price falls below $50K as investors rush to exit crypto markets

Bitcoin price dipped below $50,000 after an announcement revealed that US President Joe Biden could increase capital gains taxes for the rich. The leading cryptocurrency fell in tandem with the US stock market as fears of a potential tax ...

More Bitcoin News

Chainlink price warns no space for mistakes, as LINK hovers above critical support

Chainlink price stumbles at topside trend line, plunges into support. Weekly bearish momentum divergence at the recent high was a clue that weakness was coming. JustBet will use Chainlink oracles to optimize gaming platforms on the Polygon Network.

More ChainLink news

Tezos price sinking in quicksand as technicals project a further 30% decline

Tezos price triggered a double top pattern on April 18. Tezos price triggered a double top pattern on April 18. Topside trendline factoring into the price action, similar to the February highs. Smartlink launches decentralized escrow and marketplace on Tezos.

More Tezos news


Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast