- Polkadot is on the verge of a colossal liftoff to highs around $85.
- DOT breakout depends on the bull's ability to defend the ascending triangle's x-axis support.
- Closing the day under $40 may trigger a sundry of sell orders, culminating in declines to $30.
Polkadot recently broke out of a key technical pattern but failed to crack the resistance at the all-time high of $47. A correction ensued, whereby losses extended temporarily under $40. Meanwhile, a reflex rebound occurred, sending DOT above $40. Although recovery seems an uphill battle, fortifying the technical support may validate the 115% breakout.
Polkadot Eyes Liftoff to $85
The four-hour chart highlights the formation of an ascending triangle pattern. This is a bullish technical pattern that forms amid an uptrend. Two trend lines mold it, one connecting a series of relatively equal paths and the other linking the ascending lows.
Since ascending triangles are continuation patterns, a breakout is expected above the x-axis. An increase in trading volume confirms this move. The pattern has an exact breakout target measured from the highest to the lowest points.
DOT/USD Daily Chart
Despite the hurdle at $47, holding onto the x-axis support is also a bearish signal that may lead to the same 115% breakout. The Moving Average Convergence Divergence (MACD) indicator hints at the trend being in the bulls' hands. If technical levels remain intact, Polkadot will resume the uptrend toward $50. Trading beyond this zone could trigger extensive buy orders as speculation intensifies for gains toward $85.
Looking at the Other Side of the Picture
The four-hour chart shows that the MACD is stuck in the negative region. The MACD line (blue) attempt to cross above the signal line was thwarted when the price failed to clear hurdle the 50 Simple Moving Average (SMA).
DOT/USD Four-Hour Chart
Sideways action is likely to take precedence in the coming sessions, based on the leveling motion of the MACD. Besides, closing the day under $40 would sabotage the potential breakout. Support is anticipated at $37.5 and the primary anchor zone between $27.5 and $30.