Date: Tue, Jan 28, 2025, 03:26 PM GMT
The cryptocurrency market is experiencing a swift recovery in major altcoins following yesterday’s sharp decline. Bitcoin (BTC) dropped to a low of $97,795 but has since rebounded to its current price of $102,500.
Following this momentum, Polkadot (DOT) is also making a comeback, though it remains in the red with a 15% monthly decline.
However, a promising technical pattern suggests that a potential reversal could be on the horizon, as highlighted by prominent crypto analyst @JohncyCrypto.
Analyst Insights
According to analyst, Polkadot (DOT) appears ready to bounce from the broken descending triangle resistance, which is now acting as support on the weekly chart. If this structure holds, DOT could be on track for a sustained upward movement in the coming weeks.
After a prolonged downtrend, DOT has successfully broken out of its descending triangle, a bullish reversal pattern. The price is now retesting the breakout level at $5.83, confirming it as new support. The 100-week moving average is aligning with the breakout zone, further strengthening the likelihood of a bounce. If DOT holds this level, bullish momentum could accelerate.
If DOT successfully breaks above $7, the next major level to watch is $11, a significant psychological and Fibonacci retracement level. Further continuation of the bullish trend could see DOT targeting $16, an area where the price previously faced strong resistance. If momentum continues to build, DOT could reach $24, aligning with the 1.618 Fibonacci extension, marking a potential breakout rally.
Final Thoughts
Polkadot (DOT) is at a critical support level, testing the descending triangle breakout zone. If it holds, the next leg up could push DOT toward its Fibonacci targets, with $7, $11, $16, and ultimately $24 in sight. However, a failure to maintain support could lead to further downside risks, making it essential to monitor price action in the coming days.
Disclaimer:
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