Polkadot (DOT) Breaks Out of Falling Wedge Pattern, Eyes 100% Gain

Polkadot (DOT) has recently broken out of a prolonged falling wedge pattern, indicating a potential trend reversal. Market analysts have noted that DOT has officially broken above its falling wedge pattern, supported by strong bullish volume. This pattern had constrained price movement for several months, but the breakout now opens the door for a potential 2x move, with projected targets reaching up to $12 if momentum continues.

The daily chart confirms a clean breakout above descending resistance, suggesting a change in long-term market structure. Traders are closely monitoring price action for confirmation, including support retests and sustained volume. The breakout has also aligned with broader bullish activity in the altcoin sector, further reinforcing the potential for upside.

DOT is currently trading near $4.10 on the 1-hour chart, after pulling back slightly from a local high of $4.19. Technical analysts note that the asset has formed a bullish flag following its breakout, which could lead to another leg upward if support holds. The $4.05 zone is now acting as a key level, flipping from resistance to support. Analysts see a favorable risk-to-reward setup, with upside targets at $4.14 and $4.19. If DOT holds above $4.05, buyers may gain control, contingent on overall market strength and trading volume.

Polkadot is set to release 2.30 million DOT tokens between July 14 and July 21. According to tokenomist data, the unlocked amount represents about 0.15% of the current supply, with a market value of approximately $9.39 million. Although the percentage of new tokens is relatively small, unlock events often create short-term volatility. Traders will be watching closely for potential sell pressure or market shifts as the additional supply enters circulation.

This unlock coincides with over $1.57 billion in scheduled token releases across the crypto market during the same period. Market participants are now balancing bullish technical setups with the possible effects of this token release. The combination of a breakout pattern, short-term support tests, and supply increases makes this week critical for DOT’s price trajectory.

Despite the potential risks associated with the token unlock, the breakout in DOT's price indicates that investors are optimistic about the token's future prospects. The Polkadot ecosystem has been gaining traction, with a growing number of projects and developers building on the platform. This increased activity has contributed to the token's price appreciation, as investors recognize the potential of the Polkadot network to become a leading player in the blockchain industry.