The cryptocurrency Polkadot (DOT) has gained attention for its unique approach to interoperability and scalability within the blockchain space. Despite its recent upward momentum, the presence of a rising wedge chart pattern on the price chart indicates a downturn in the future. Traders and investors closely monitor confirmation signals, such as a break below the lower base of the wedge, to validate the pattern and predict possible pressure.

As of the time of , the price of DOT has experienced a slight decline of -0.13%, trading at around $7.13, with a market capitalization exceeding $10 billion and a trading volume surpassing $153 million. While the market capitalization has decreased by 0.39%, the trading volume has risen by 0.34% within the last 24 hours.

Utilizing the 100-day Simple Moving Average (SMA) and Relative Strength Index (RSI), a comprehensive analysis was conducted across both the 4-hour and daily timeframes. In the 4-hour chart, DOT is currently exhibiting a consolidation pattern, with the upper and lower bases of the wedge gathering momentum beneath the 100-day SMA. The RSI on the 4-hour chart indicates a potential break below the lower base of the wedge, as the RSI line slightly below the 50% mark. This formation implies a downward movement towards the nearest key support level if the wedge is breached.

On the daily chart, the price of DOT is situated within the wedge pattern near the lower base. The RSI on the daily timeframe further suggests a bearish outlook, as the RSI line is on the verge of crossing below the 50% threshold. Investors are advised to monitor for a decisive breakdown below the wedge before considering any selling positions. A breach below the wedge could initiate a decline towards the $4.8 support level, potentially extending to the $3.5 support level.

Alternatively, a breakout above the upper base of the wedge would signal a bullish trend, propelling the price of DOT towards the $9.8 resistance level. Further upward movement could lead to a test of the $11.9 resistance level. A sustained rise above $11.9 may pave the way for Polkadot to explore higher price levels in the market.

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The rising wedge chart pattern presents a pivotal moment for Polkadot’s price trajectory. Traders and investors must remain vigilant for confirmation signals and price movements to make informed decisions in navigating the volatile cryptocurrency market.

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Analysis

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