Polkadot (DOT) Price Prediction: DOT Eyes $17 as Bullish Pennant Pattern Emerges

Polkadot's (DOT) daily chart showed a bullish pennant pattern formation during its current period of consolidation.

Polkadot (DOT) price showed a bullish pennant pattern on the daily chart during its current period of consolidation.

At the time of writing, the Polkadot price was trading at $6.28. Technical analysis showed potential for growth beyond this level, with a possible DOT price rally toward $17 if a breakout occurs from this pennant pattern formation.

According to analyst Ali Martinez, the bullish pennant pattern being studied suggested a Polkadot price target of $17. This was arrived at by analyzing the flagpole height before the price consolidation phase.

The analyst interpreted the pattern as part of a continuous formation, indicating that the DOT price would continue surging after a successful breakout.

However, to proceed with the upward price action, Polkadot price had to break through the $7.00 resistance.

During this process, the price could break out from this resistance zone while displaying rising volume alongside positive momentum.

Once this happens, the token could aim for the $17 price target, aligning with the broader market bullish outlook for this cycle.

Bollinger Bands Tightened Significantly

The Bollinger Bands tightened considerably in the last trading sessions on the technical indicators.

These bands typically help determine the level of price volatility. Less volatility is indicated by narrower bands, while greater volatility is indicated by wider bands.

This means there is low volatility, which is often a precursor to sharp price swings.

Historically, when the Bollinger Bands tighten, the asset tends to experience a directional breakout due to increased market volatility.

The Polkadot price was trading near the lower end of the Bollinger Bands at $6.28. This positioning often indicates that the asset is overbought.

Furthermore, a bounce toward the middle or upper band is possible. However, analysts will seek further affirmation from price action and volume to check for a bullish breakout.

MACD Indicated Weak But Positive Momentum

Moreover, the MACD indicator for the Polkadot price showed that the bullish momentum was still weak.

The MACD line is still above the signal line, which indicates that there was buying pressure. However, it was not very strong.

The nearly flat histogram bars suggest that the market is consolidated. The buyers and sellers were equally balanced.

Hence, the MACD line may cross above the signal line, and the histogram expands into positive territory.

If this happens, it could indicate even greater bullish pressure. It would correspond with a potential breakout from the pennant pattern. This will give further backing to the possibility of the $17 target.

In other news, recent analysis indicated that the DOT price breached and retested the downward trendline, suggesting a potential upswing toward the $25-$30 range in the mid-term.

The 5.30% increase in Open Interest and the large outflow of assets from exchanges indicate increased investor confidence despite the difficulties in maintaining above the 100-day EMA.

The views, and opinions stated by the author, or any people named in this article are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.