The cryptocurrency market is once again experiencing volatility, driven by geopolitical tensions, particularly between Israel and Iran. In this situation, Ethereum and Polkadot are showing significant changes.
Current Market Situation
The cryptocurrency market is facing bearish trends once again, particularly following the worsening geopolitical situation. Over the past week, Ethereum (ETH) has dropped by 7%, trading around $2,530. Altcoins like Polkadot (DOT) are also suffering losses, not being an exception in the current situation.
Fractal and Potential Growth of Polkadot
A closer look at DOT’s weekly chart reveals a striking similarity to its price action from late 2024. Back then, DOT also experienced a lengthy downtrend that ended with a textbook falling wedge formation. This was followed by a consolidation phase, culminating in a powerful 171% rally. The current chart structure looks almost identical.
Prospects and Risks for DOT
If the historical trend persists, DOT may be on the verge of significant growth. A breakout that clears the 50-week moving average could pave the way for a rally towards $11 or more. However, the need for confirmation remains critical, given the current uncertainty in the global arena. If the breakout fails to gain momentum or gets rejected, DOT may see another decline.
Amidst the current market volatility, it is important to monitor DOT's behavior and its potential breakouts. The market requires attentiveness and caution before making any investments.
