The Polkadot (DOT) market endured a rather turbulent trading week marked by significant losses. According to data from CoinMarketCap, DOT dipped by 8.54% over the last seven days wiping out all gains of an earlier recovery. However, despite this downtrend, renowned market analyst Ali Martinez has presented a strong bullish case for the altcoin.
Polkadot Prepares For Major Price Breakout
In a recent X post, Martinez shared an exciting prediction for the DOT market indicating a potential price surge on the horizon. According to the crypto market expert, Polkadot’s current price pattern suggests the token is primed for a significant price breakout.
This bullish projection is based on the formation of a bull pennant on the DOT daily trading chart. For context, the bull pennant is a continuation pattern in technical analysis that signals the potential for strong upward price movement after a period of consolidation.
Based on the image above, the bull pennant pattern begins with a flagpole represented by a strong price uptrend which indicates a strong buying momentum by Polkadot investors in November 2024.
After this price surge, the pennant follows which displays a price consolidation in a symmetrical triangle as seen from December 2024-present. This price movement indicates a temporary imbalance between buyers and sellers marked by declining trading volume.
The bull pennant is complete when a price breaks above the upper trendline of the pennant, often accompanied by a surge in trading volume. The breakout signals a continuation of the prior price surge and usually results in a price move equal to the length of the flagpole.
According to Ali Martinez, if Polkadot achieves a successful breakout from its current structure, the altcoin could trade as high as $17 in relation to its price rally in November. Interestingly, this price surge would represent a 167.29% profit on DOT’s current market price.
Notably, Polkadot could still encounter substantial resistance on this projected bullish breakout. Importantly, market bulls should prepare to push past the $10.5 price zone which previously halted DOT’s initial price rally in November.
DOT Price Overview
At the time of writing, Polkadot trades at $6.36 following a slight 0.28% gain in the past 24 hours. Meanwhile, the asset’s trading volume has dipped by 26.42% and is currently valued at $142.76 million. Over the last month, DOT has recorded a 9.03% demonstrating a stronger selling pressure in recent weeks even amidst its price consolidation.
Nevertheless, the DOT community remains 87% bullish with a robust confidence in the coin’s long-term profitability. Aside from Ali Martinez, other crypto analysts with X usernames jrcryptex and Philakone are betting on an immediate price gain by the altcoin.
Source: NewsBTC