Compass Investments

– Polkadot prices doubled last week, but have been bearish for the past 24 hours.

Most indicators suggested a price rise that could lead to a bullish pattern breakout.

After a week of promising price gains for Polkadot [DOT], the bearish stance took over and prices fell in the past few hours. However, the story has continued as a bullish pattern has formed on the token’s price chart.

Let’s see if DOT can break above this pattern in the near future.

According to CoinMarketCap, Polkadot’s price rose more than 13% last week. However, in the last 24 hours, its price has fallen by more than 5% , changing the scenario.

At the time of writing, DOT is trading at $4.57 and has a market capitalization of more than $6.6 billion, making it the 14th largest cryptocurrency.

This negative price movement was also reflected in the cryptocurrency’s social indicators: the weighted sentiment index fell into negative territory. This means that the bearish sentiment around the token has intensified.

Social volumes also gradually declined, reflecting the decline in popularity.

Meanwhile, popular crypto analyst ZAYK Charts recently posted a tweet noting an interesting development. According to the tweet, a bullish descending wedge pattern has formed on the two-day token chart. This pattern emerged in early 2024, and since then, DOT has been consolidating within it. As of press time, it is showing signs of a breakout.

If this happens, Polkadot could reach $10 in the coming weeks and months.

Is a breakout possible? AMBCrypto then analyzed data on tokens on the blockchain to determine the likelihood of a breakout. Santiment’s analysis of the data showed that DOT’s trading volume was falling along with its price.

This indicated that DOT might soon record a breakout.

In addition, open interest had also stopped. When this indicator declines, it is a sign of a trend reversal.

It is worth noting that while price action remains volatile, DOT development activity remains strong, and the DOT has had an edge on this front for several years now.

In addition, at the time of writing, the Polkadot Fear and Greed Index was in the “fear phase”. This indicates a high potential for price increases.