Polkadot’s native cryptocurrency, DOT, has experienced a notable 6% increase, reaching $6.5 after asset manager 21Shares filed for the first-ever spot Polkadot ETF. This filing, submitted to the U.S. Securities and Exchange Commission (SEC), has sparked significant market optimism, leading to a surge in DOT’s daily trading volume, which rose by 75% to more than $338 million.
Bullish Technical Patterns and Fibonacci Analysis
The DOT price chart is showing strong bullish potential. Between August and November 2023, Polkadot formed a descending triangle pattern, eventually leading to a breakout and a rally that peaked at $11.00 in December. Currently, a descending wedge pattern is forming with the price consolidating around $6.217.
Key Fibonacci retracement levels to monitor include the 0.618% level at $6.772 and the 0.786% level at $5.434. Recent price action suggests a bounce from the lower trendline and the 0.786 Fibonacci level, hinting at a possible bullish reversal. However, confirmation is still awaited. For sustained bullish momentum, DOT needs to breach the critical resistance level at $7.545. If this occurs, analysts predict a potential rally toward a target of $14.60.
Polkadot Positioned for Massive Gains
According to market analyst Javon Marks, Polkadot is primed for a significant price surge. Marks believes that DOT’s multiple breakouts indicate strong bullish momentum, and if the projection holds, the cryptocurrency could experience a remarkable 650% price increase from its current levels.
Marks sets a price target of $53.38 for DOT, noting that the current market activity supports the idea of an impending breakout. As of now, DOT is trading at $6.43, with a market cap of $9.92 billion and a daily trading volume of over $338 million.
Also Read: Polkadot (DOT) Breaks Out: Price Predictions and Key Drivers Behind Its Surge
The Impact of the Spot Polkadot ETF Filing
The filing for a spot Polkadot ETF could potentially boost DOT’s mainstream adoption, as it would allow investors to gain exposure to the cryptocurrency without directly holding the asset. As the cryptocurrency market continues to grow, the filing signals increased institutional interest and a more optimistic outlook for Polkadot’s 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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