Key Takeaways:
- DOT trades near all-time lows, but technicals promise an 85% rally.
- A short-term target stands at $3.3, or 10% lower.
- Polkadot developers could push the coin further.
YEREVAN (CoinChapter.com) — Polkadot (DOT) has risen 0.8% to $3.70 on Oct. 13. Moreover, the token eyes a potential 85% rally based on a technical setup.
DOT near an all-time low – rebound possible
DOT coin price has dropped 13% month-to-date and traded near its all-time low. The Polkadot token has been fluctuating inside a “falling wedge” setup since January 2023.
The falling wedge setup features two descending, converging trendlines enveloping the price action. It mostly resolves in bullish reversal, when the price breaks above the upper trendline and rises to level at the length equal to the maximum height between the upper and the lower trendline.
Thus, the target price for DOT would be around $6.90, up 85% from the current value.
In addition, DOT’s daily relative strength index (RSI) has dropped below 30, signaling a potentially profitable market entry point.
Polkadot Counts
Meanwhile, a crypto analyst noted an analogy with the 2018 Ethereum charts, which prompted their bullish stance on the coin and expectations of a potential x3 rally.
Moreover, according to on-chain data provider Santiment, Polkadot developers pushed the platform to second place by the number of Github commits.
Generally, high development activity may attract long-term investors who believe ongoing development will result in higher token prices.
It is not clear if DOT bulls will buy the dip.
But even if they prevent the Polkadot token from dropping further, a bullish move appears unlikely in 2023, considering the overall bearish climate on the crypto market and macroeconomic headwinds. If 2024 brings more favorable market conditions, the falling wedge prediction could take DOT on an 85% surge.
