DOT Price Analysis: Is a Reversal Rally Ready to Take Off?

25. August 2023 Aus Von admin

• The DOT price has been declining and formed a descending triangle pattern in the 1-day chart.
• The double bottom pattern at $4.29 with strong lower price rejections is forming a bullish reversal.
• If the reversal rally breaks above the triangle, the DOT price can jump to $6.30 while a bearish breakdown of $4.29 will plunge it to $2.27.

DOT Price Analysis

The Polkadot (DOT) price has been declining and forming a descending triangle pattern in the 1-day chart resulting in minimal YTD growth for the cryptocurrency. Despite this, there is still potential for a bullish reversal due to the double bottom pattern at $4.29 with strong lower price rejections and positive cycle which could rechallenge an overhead resistance trendline above $5 if successful.

Descending Triangle Pattern

The minimal YTD growth in Polkadot is a result of this triangle pattern between $4.98 and $5.53 showing bearish breakouts to test the $4.29 mark before completing its negative cycle within the triangle. The daily RSI line displays a bullish divergence however, the declining EMAs will prove to be an obstacle in any recovery rally attempts by DOT price action..

Double Bottom Pattern

The double bottom formation at $4.29 with strong lower price rejections provides support for potential bullish reversals that could lead to DOT prices jumping up to reach as high as $6.30 if successful while bearish breakdowns below this level would mean prices plummeting down towards$ 2.27 instead..

Bullish Launch Prospects

Despite only recording single-digit YTD growth, Polkadot sets itself up for possibly launching into a moonshot trajectory should it successfully reverse its current downward trend and break out of its current triangle formation leading into higher levels of market capitalization goals being achieved overall .


The solid use cases and development activities associated with Polkadot such as USD Coin from Circle soon being available on Polkadot project paint an optimistic picture for future performance should it launch into its expected moonshot trajectory by breaking out of its current downward trend experienced over recent weeks .