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$40 Target for DOT: The Technical Formation That’s Driving Market Optimism
December 23, 2024 – Polkadot’s falling wedge breakout on the weekly chart indicates a potential midterm rally towards $40, with critical resistance at $10 and $20. The retest of the breakout point confirms support, increasing the likelihood of sustained upward momentum.
After the impressive bullish breakout from a falling wedge pattern on a weekly time frame chart, Polkadot (DOT) has garnered attention in the cryptocurrency space. This technical formation comprising three ascending lines is perceived as the end of a downtrend and a signal to initiate an upswing. Pundits believe that following the retest of the breakout triggers a post-breakout rally, DOT can reach a midterm value of $40, significantly above its current levels.
The recent falling wedge breakout has sparked market optimism, with many traders and analysts expecting the cryptocurrency’s price to continue its upward trajectory. The fact that the retest of the breakout point confirms support only adds fuel to this expectation. In other words, the trend persistence and buyer interest are now validated by technical analysis, paving the way for a more substantial price increase.
It is essential to note that the momentum indicators should be closely monitored as they will provide crucial insights into trader sentiment. High turnover and positive trend persistence are desirable characteristics that would enable traders to apply pressure on prices. Any signs of weakness or hesitation in these metrics could lead to a temporary correction, but for now, all eyes are set on reaching the predicted $40 milestone.
Vee Peninah
Source: cryptonewsland.com
