Polkadot price forms a rare pattern, 76% jump possible

Polkadot price may be preparing for a major uptrend as a rare formation that has been forming since August is nearing completion.

Top tier 1 network Polkadot (DOT) was trading at $4.30 on Friday, November 8, after rising for four consecutive days. It has rebounded 18% from its low point this year, meaning it is approaching a bull market.

Crypto analysts think Polkadot is on the rise despite its weak fundamentals. One of the main themes was the falling wedge formation that has been forming since August 1. A crypto analyst known as Globe of Crypto predicted in an X post that the coin could jump to between $9 and $10 once the breakout occurs. . In such a case, the DOT token will be seen more than double.

A potential catalyst for Polkadot price is the network’s new connection to other chains such as Ethereum, Optimism, Arbitrum, Base, and Binance Smart Chain. This connection provided by Hyperbridge means that users can move assets between these chains without the need for intermediaries.

Meanwhile, there are signs that open interest in the futures market is gaining momentum. DOT’s open positions reached over $269 million, reaching its highest level since June 17. It has made a strong comeback after falling to $179 million in September.

The biggest challenge for Polkadot, though, is that it hasn’t gained much traction among developers. It has been overtaken by other new networks such as Base and Sui, as its ecosystem growth is relatively weak.

Polkadot price analysis DOT chart from Crypto.news

The daily chart shows that the DOT price has been in a tight range over the past few months. During this period, it constantly remained below the 50-day and 100-day moving averages.

On the positive side, it has formed a falling wedge formation that is now approaching the confluence level. Such a move, especially at a time when oscillators such as the Relative Strength Index (RSI) and Stochastic are pointing upwards, is a sign that the cryptocurrency will soon enter an upward trend.

In such a case, Polkadot price may jump to $7.77, the highest rise since May 27 and the 50% Fibonacci Retracement point. In such a case, the token will jump 76.50% from the current level. This view will be invalidated if it breaks below this month’s low of $3.66.