Polkadot’s price shot up 10% after Robinhood spotlighted its listing. It subsequently broke out of a multi-month falling wedge pattern that suggests strong upside over the coming months.
Summary
- Polakadot price was up 10% on Wednesday.
- Robinhood listing and whale buying have supported the rally.
- A falling wedge pattern was confirmed on the daily chart.
According to data from crypto.news, Polkadot (DOT) rallied to an intraday high of $2.32 on Wednesday, Jan. 14, before settling at $2.29. At this price, the altcoin remains 38% higher than its December low.
Polkadot’s price rebound today can primarily be attributed to the U.S. based crypto trading platform Robinhood spotlighting its listing on the platform. Being listed on such a popular platform means the token will now be exposed to millions of retail traders, which could draw in fresh liquidity and boost its price in the long run.
Another factor supporting Polkadot’s rally was renewed accumulation from whales, as data compiled by Nansen shows. Typically, when whales begin accumulating an asset, these large-scale entries often inspire retail confidence and draw fresh capital into the token’s ecosystem.
Besides whale activity, derivatives traders also appear to be increasing leverage to bet on further gains. Per CoinGlass data, Polkadot futures open interest has increased nearly 15% over the past 24 hours to $231 million, while the weighted funding rate has flipped positive.
Overall, these metrics suggest that market participants are growing increasingly optimistic about the asset’s short-term performance.
On the daily chart, Polkadot has confirmed a breakout from a falling wedge pattern that had been forming since early October last year. Consisting of two descending and converging trendlines, this pattern is considered a bullish trend reversal signal within trading circles.
Hence, Polkadot price could rally to $4 next, a target calculated by measuring the height of the falling wedge and projecting it from the breakout point.
Further supporting the upside narrative, Polkadot price has moved above a multi-year descending trend line that had been acting as a key resistance.
Historically, whenever bulls attempted to drive DOT toward this level, they were met with sharp reversals that reinforced the token’s persistent downtrend. A breakout from this structure means that the long-standing downward pressure is finally easing, potentially marking a pivotal shift in market sentiment.
Moving on to technical indicators, the MACD lines have crossed the zero line and are pointing upwards. It means that bullish momentum is accelerating, and the buyers are beginning to take control of the price action.
At the same time, the RSI has formed a bullish divergence, a setup that has historically preceded significant price recoveries.
When writing, DOT was trading at $2.29, which puts the $4 target roughly 74% higher.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
