Polkadot Breaks Bearish Wedge, Potential Trend Reversal with $5 Key Resistance
Whale activity reflects confidence while balanced liquidations indicate cautious optimism before potential rebound.
With upcoming upgrades such as JAM v1.0 for decentralized computing, 64-bit PVM upgrade, and Polkadot 2.0 targeting 2025, anticipation grows for these developments that could drive the recovery phase.
DOT traded at $4.49, up 1.74% at the time of writing. However, the bigger question remains whether this breakout can sustain and lead to a broader trend reversal.
Overview of DOT Market
Polkadot’s trading volume has seen a significant increase of 58.26%, reaching $139.24 million.
This surge in volume indicates growing interest, potentially driven by excitement surrounding advancements in network technology.
Furthermore, Polkadot’s market cap has grown by 1.78%, reaching $6.78 billion. Hence, the market displays apparent optimism, but the next price movement will confirm the validity of this breakout.
Is $5 the Next Stop?
Breaking the bearish wedge, a bullish technical pattern, suggests a possible end to Polkadot’s long-term downtrend. At the time of writing, DOT is priced at $4.49, facing the next key obstacle of $5.00 resistance.
If Polkadot can break and sustain this level, it may trigger a new bullish cycle. However, failing to do so might result in consolidation or even a price reversal.
Technically, the RSI currently stands at 56.53, indicating a neutral to bullish momentum. Additionally, the MACD shows a bullish cross, suggesting momentum might support further uptrends.
Do Whales Support DOT?
Whale activity reflects strong market sentiment.
57.55% of stablecoin supply is controlled by whales with holdings of over $5 million, indicating long-term confidence from large investors.
This indicates influential holders maintain a bullish sentiment, potentially supporting a sustained recovery.
Liquidation Analysis: Are Bears at Risk?
Polkadot’s liquidation chart shows recent liquidations of $45.96 million for bears and $54.47 million for bulls. This balanced liquidation activity suggests cautious market sentiment.
However, if the price breaks $5.00, we may witness an increase in bear liquidations, further propelling an upward trend.
Read more: Polkadot [DOT] Price Prediction 2024-2025
Will Polkadot Break the $5 Threshold?
Polkadot’s breakout from the bearish wedge, coupled with increased trading volume and strong whale activity, indicates a potential trend reversal.
With the upcoming upgrades adding bullish momentum, DOT has the potential to break the $5.00 resistance. If successful, a sustained upward trend may occur.
