Polkadot (DOT) recently broke free from a downtrend, marking a significant shift supported by increased buying volume.
Breakout and Volume Surge
Polkadot (DOT) has finally escaped a descending wedge pattern that has persisted since December 2023. This breakout coincided with a dramatic increase in bullish volume, indicating strong support levels. DOT is currently trading at $4.11, which is a 2.3% increase over the past 24 hours. Nearby resistance is at $4.19, while support stands at $3.96.
Target Level at $8.00
The breakout from the wedge suggests a price target based on the widest part of the pattern. According to the chart setup, this measured move indicates a potential upside of 2.84x from the breakout level, setting the $8.00 region as a significant focus in the medium term.
Resistance and Support Levels
Currently, DOT is trading within a tightly defined range. Immediate resistance is noted at $4.19, with local support forming at $3.96. Volume profile data indicates increased transaction activity around these levels, confirming market interest. The 24-hour price range reflects these fluctuations.
Polkadot (DOT) has exhibited positive changes, emerging from the falling wedge supported by active buying. Successfully holding above the support level could allow for further movement towards the target of $8.00.
