Polkadot Price Holds Within Descending Wedge Pattern Awaiting Breakout

Polkadot (DOT) is currently trading within a descending wedge pattern, with key support at $3.40 and resistance at $3.51. This technical setup has been in place since December 2024, with the price action bounded within converging trendlines. Despite a recent decline, the technical structure remains intact, with the price currently at $3.42, down 0.2% in the past 24 hours.

The recent price rejection near the $3.51 resistance level has not breached the lower boundary of the wedge, maintaining the validity of the technical setup. The range between $3.40 and $3.51 has contained price action for several days, with volume levels remaining relatively unchanged. This indicates indecision between the two levels, but the symmetrical contraction of the wedge suggests a higher chance of future volatility.

According to the analyst's forecast, if the price sustains a breakout above the $3.51 resistance, there are three potential breakout targets. The first target is at $5.15, implying a 47.73% increase from the current price. The second target is at $7.63, reflecting a 115.47% gain. The third possible target is at $11.05, with a 210.75% rise. These projections are based on vertical extensions from the breakout level, which remains within the wedge’s range.

Polkadot’s structure is currently compression-bound, shaped by lower highs and relatively equal lows. The descending resistance and horizontal support have provided a consistent framework. The narrowing wedge pattern has historically been used to forecast strong directional moves. Support remains anchored at $3.40, with resistance capped at $3.51. The projected upside levels, although significant, rely on price action validating the breakout.