Polkadot (DOT) has endured a rough couple of days, plummeting roughly 15% in value. However, a recent 9.67% surge offers a glimmer of hope, pushing the price to $6.24. Despite this recovery, DOT remains significantly down (47.47%) from its April peak of $11.88.
A DOT ETF on the Horizon?
A potential catalyst for a turnaround could be news of a DOT ETF. DeFi researcher and crypto analyst 0xNoble revealed rumors of Coinbase secretly planning a DOT ETF application. This early-stage application reportedly targets a July 15th filing for initial approval. Following their June 28th application spree for DOT Futures Contracts, a Futures ETF, and a Spot ETF, Coinbase’s interest in Polkadot is undeniable.
Proponents believe a DOT ETF could significantly benefit the network, with increased activity already observed on Coinbase Derivatives. If approved, such an ETF could provide a much-needed boost to DOT’s price amidst the recent market slump.
Technical Analysis Hints at Bullish Reversal
Adding fuel to the fire, analysts at ZAYK Charts identified a potentially bullish technical pattern on DOT’s one-day chart – a falling wedge. This pattern, characterized by converging downward trendlines and lower highs/lows, often precedes a bullish reversal.
While sellers have held some control, ZAYK suggests their influence is weakening. Since its February peak, DOT has oscillated within this wedge, finding support at the lower boundary and resistance at the upper boundary. A decisive break above the upper trendline is anticipated, signifying a shift in market sentiment and potentially triggering a strong rally.
A 56% Surge in the Making?
ZAYK’s analysis suggests a potential breakout target of $9.60, representing a significant 56.13% increase from current levels. The chart highlights this target zone for easy visualization. The timing of this breakout is crucial – the narrowing wedge intensifies pressure, increasing the likelihood of a breakout.
Also Read: Polkadot Price Poised for Breakout Despite Recent Downturn: Can DOT Hit $9.00?
Traders should pay close attention to price action around the upper trendline, watching for signs of increased buying pressure. The combination of a potential DOT ETF and this bullish chart pattern creates a scenario ripe for a substantial Polkadot price rally in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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