Polkadot (DOT) Poised to Break Triangle Pattern, Targets 60% Rally

Key Takeaways

• Polkadot price has avoided breaking below the support of the descending triangle.
• Bulls appear to be aiding the token’s value in recovering lost gains.
• If validated, the bullish trend might send DOT to a price last reached in December.

On Dec. 4, 2024, Polkadot (DOT) price rallied above $11. The price increase at that time indicated that the token could end the year strongly.

By Dec. 31, the price had fallen to $6.61, and it started the New Year with a weak price action. Since that period, DOT has remained confined within a bearish pattern, which hinted at further declines.

But as of this writing, signals shown on the charts reveal that the altcoin’s downturn could be nearing its end. Here is how.

Polkadot Evades Dropping Below Support

Polkadot’s price is $6.50. On the daily chart, the cryptocurrency has been trading within a descending triangle since Dec. 7.

A descending triangle is a bearish pattern formed by a falling upper trendline, which indicates lower highs, and a flatter, horizontal lower trendline, which marks support.

This pattern indicates increasing selling pressure and a potential breakout to the downside once the price slides below support. But in DOT’s situation, support sits at $6.31, and the token has bounced above the line.

The bounce above the support level indicates that DOT’s price might not face another correction. Instead, a double-digit rally could be on the way.

Furthermore, the Balance of Power (BOP) also supports this outlook; the BOP measures the strength of buyers (bulls) compared to that of sellers (bears).

When the BOP is positive, it indicates that bulls have the upper hand, and prices can increase. On the other hand, a decline in the indicator’s reading favors bears.

As shown above, the BOP reading has jumped on the DOT/USD daily chart.

If sustained, Polkadot’s price might evade dropping below the support and begin to trade higher.

DOT Price Prediction: Double-Digit Value Incoming

Interestingly, further analysis of the daily chart shows that the current support was similar to the price level that supported DOT’s rally above $11 in December.

During that period, bulls resisted bears’ attempts to drive the token below $6. With Polkadot’s price trading above the region, it could follow a similar pattern.

However, this does not mean that the DOT price will replicate the exact move. If buying pressure increases, the cryptocurrency’s value might reach the 0.786 Fibonacci level.

This Fib level currently sits at $9.94 and hints that Polkadot’s price could climb to above $10, which could represent a 60% rally. If successful, this could set the stage for the DOT to climb toward $12 in the short term.

However, this prediction might be invalidated if Polkadot’s price breaks below the support at $6.31. In that case, the token could shrink again, and the price might decrease to $5.54.