A descending triangle sample forms on the 1-day chart as a result of the rapidly declining DOT value. This triangle sample is a cause of Polkadot’s modest YTD growth. With USD Coin from Circle soon to be available on Polkadot, the stable use case and growth activities forecast a favorable future.
A bearish breakout to test the $4.29 level is provided by the DOT value action following the consolidation between $4.98 and $5.53. The decline brings up the possibility of a positive reversal and completes the triangle’s destructive cycle.
The DOT value motion types a double backside sample at $4.29 with strong cheaper price rejections, supporting the bullish thesis. Additionally, the $4.29 assistance stage was crucial in 2023 to provide crucial bounce-backs and absorb the surge in supply influx.
The daily RSI line displays a positive divergence, mirroring the market as a whole. However, the EMAs’ downward trend will prove to be a barrier for the recovery rally.
Polkadot sets up a bullish launch regardless of a single-digit YTD development in order to take a moonshot. The upward trendline of resistance can be challenged by the upbeat cycle just above $5. The DOT value may climb to $6.30 if the reversal rally breaks above the triangle.
The DOT value will fall to $2.27 if there is a bearish breakdown of $4.29.
