After a long six-month recovery phase, Polkadot (DOT) arouses interest again; some analysts believe that the token may soon undergo a major bullish reversal.

Among them, a market analyst referred to as “Worlds of Charts” notes that a falling wedge pattern has emerged, sometimes interpreted as a sign of an imminent breakout to the upside.

Polkadot’s technical setup is consistently gaining momentum. investors are closely watching what could be a significant upside for the successful altcoin.

$Dot#Dot Polkadot is showing signs of turning around after a six-month recovery phase. The formation of a falling wedge pattern combined with a clear bullish divergence on key indicators suggests a high probability of a successful breakout. Once confirmed, DOT may direct… pic.twitter.com/1JpVUM0oHJ

— World of Charts (@WorldOfCharts1) September 25, 2024

Until the larger cryptocurrency market begins to recover, this prediction does not seem unreasonable as Polkadot is critical for blockchain interoperability and has the potential to attract investor attention again.

Falling Wedge: Bullish Reversal Pattern

The most consistent technical indications for identifying a reversal include the formation of a falling wedge. The token is moving in two downtrends, thus narrowing the price range.

The trajectory usually shows a decreasing bearishness; as the negative momentum fades, the likelihood of a breakout to the upside becomes greater. In the case of Polkadot, the trend has been developing for several months, indicating that the token may be preparing for a significant price augment.

Added to this is the Relative Strength Index, another well-known momentum indicator that has recently hit higher lows even though the DOT price has been trending down.

The divergence in price and momentum, which always indicates decreasing selling pressure, suggests that the bulls will soon regain control. The technical configuration favors growth despite the expected volatility.

Price growth potential and market sentiment

Considering that the token has increased by 13% over the last week and has shown a remarkable gain of 2.47% in the last 24 hours alone, the current market sentiment of Polkadot is rather positive.

These increases indicate growing demand for DOT, even if more general market conditions are not yet known. Currently trading at $4.92the cryptocurrency has a market capitalization of $7.51 billion and slight growth in trading volume.

Even more motivating is the sanguine forecast for the coming years. If DOT breaks the wedge formation, experts believe that the price could move towards the $12 resistance level.

Achieving this would be a major turnaround from the token’s current decline and would create conditions for even further gains in the months ahead.

Polkadot: Long-term projections

Looking ahead, Polkadot’s promise of growth seems even more extraordinary. In six months Checking coins forecasts a price augment of 311%; next year it predicts a more impressive 425% growth.

These numbers reflect ongoing changes to the Polkadot network, including up-to-date alliances and a focus on increasing cross-chain efficiencies.

Featured image from Polkadot, chart from TradingView