Polkadot price forms a rare pattern, 76% jump possible

Polkadot (DOT) appears to be gearing up for a potential bullish breakout as a rare technical pattern that has been developing since August nears its conclusion.

As of Friday, Nov. 8, Polkadot was priced at $4.30, following a four-day upward streak. This recent rise has pushed the coin up by 18% from its lowest point earlier this year, suggesting that it may be entering a new bull market.

Crypto analysts are optimistic about Polkadot, despite concerns about its weak fundamentals. A primary reason for this optimism is the falling wedge pattern that has been forming since Aug. 1. One analyst, Globe of Crypto, suggested that once the breakout occurs, Polkadot’s price could surge to the $9 to $10 range, more than doubling its current value.

A potential trigger for this price movement could be Polkadot’s new ability to connect with major blockchain networks such as Ethereum, Optimism, Arbitrum, Base, and Binance Smart Chain. This has been enabled through the Hyperbridge feature, allowing users to move assets across different chains without intermediaries.

Moreover, Polkadot’s open interest in the futures market has seen significant growth, reaching over $269 million, its highest level since June 17. This increase in interest suggests that more investors are positioning themselves for a potential breakout.

However, despite these bullish signals, Polkadot faces challenges, particularly its lack of developer activity compared to other newer networks like Base and Sui. This could limit its ability to capitalize on its technical setup and achieve long-term growth.

Polkadot price analysis

The daily chart for Polkadot (DOT) reveals that the price has been stuck within a narrow range over the past few months, consistently staying below the 50-day and 100-day moving averages.

On a positive note, a falling wedge pattern has developed and is approaching its convergence point. This, coupled with rising indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator, suggests that a bullish breakout is imminent.

If this breakout occurs, Polkadot’s price could surge to $7.77, which would be its highest level since May 27 and align with the 50% Fibonacci retracement level. This would represent a potential gain of 76.5% from its current price. However, this bullish scenario would be invalidated if the price falls below the low for the month at $3.66.