The cryptocurrency trader and analyst FLASH revealed in an X (formerly Twitter) post earlier today that a bullish falling wedge pattern had formed on Polkadot’s (DOT) chart. Subsequently, he predicted that the altcoin’s price may soon re-enter the demand zone between $4.203 and $4.281.

#Polkadot $Dot

— FLASH (@THEFLASHTRADING) October 23, 2023

Meanwhile, data from the cryptocurrency market tracking website CoinMarketCap indicated that DOT recorded a gain over the past 24 hours. At press time, the altcoin’s price was up more than 4%. This left it changing hands at just under the $4 mark at $3.99. The positive daily performance also pushed DOT’s weekly performance deeper into the green to +5%.

The cryptocurrency also experienced an uptick in its 24-hour trading volume. According to CoinMarketCap, DOT’s 24-hour trading volume was up 23.32%. Subsequently, the total stood at just over $154.16 million.

Daily chart for DOT/USDT (Source: TradingView)

From a technical perspective, DOT had broken above a medium-term negative trend line that had formed on its daily chart over the past several weeks. Furthermore, it was trading above this line at press time as well.

Should DOT close a daily candle above the $4.160 barrier in the next 48 hours, then it may finally break out of its dominant negative trend. Subsequently, DOT’s price could continue to rise to the next threshold at $4.790 in the following 2 weeks. However, before DOT can begin to climb, it will first need to overcome the 50-day EMA line, which was situated at $3.040.

If the cryptocurrency is unable to close a daily candle above this technical indicator in the next 48 hours, then it could be at risk of correcting to the immediate support level. In this bearish scenario, DOT may fall to $3.870. Moreover, the altcoin’s value could drop to as low as $3.570 if the potential sell volume persists.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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