Polkadot Technical Outlook: Wedge Pattern Hints At 210% Upside Move

Polkadot is trading inside a descending wedge, with key support at $3.40 and resistance at $3.51.

Potential breakout targets are $5.15 (47.73%), $7.63 (115.47%), and $11.05 (210.75%) based on chart analysis.

Despite price compression, the $3.40 support has remained unbroken, maintaining technical wedge structure validity.

Polkadot (DOT) continues to sit within a narrowing descending wedge, still above a very important support price of $3.40. The market structure now shows the asset being bounded within converging trendlines, which have been driving the price action since December 2024

DOT trades at $3.42, down 0.2% in the past 24 hours. Despite the recent decline, the technical setup remains in place. Meanwhile, the pattern of the wedge signals a potential shift in momentum if validated by the following price action.

Price Compression Signals Potential Breakout Ahead

DOT’s recent price rejection occurred near the $3.51 resistance level, which remains unbroken. The range between $3.40 and $3.51 has contained price action for several days. Notably, volume levels have remained relatively unchanged, showing no immediate influx of strong buying interest. However, the price has not breached the lower boundary of the wedge either. This keeps the setup technically valid and intact.

This movement indicates indecision between the two levels even though the symmetrical contraction poses a higher chance of future volatility. Its December upper trendline has served to limit several rallies and needs to be monitored should it be recaptured by the price. Any move through this diagonal resistance could alter short-term direction.

Wedge Targets Point to Major Upside if Breakout Holds

The chart includes three measured move projections derived from the wedge structure. The first level is marked at $5.15, implying a 47.73% increase from the current price. The second level sits at $7.63, reflecting a 115.47% gain. A third possible target is marked at $11.05, with a 210.75% rise.

These projections are plotted using vertical extensions from the breakout level, which remains within the wedge's range. However, the price must first sustain a breakout above the $3.51 resistance. Until then, the support zone near $3.40 remains the base level to monitor.

Technical Context and Risk Levels

Polkadot’s structure is currently compression-bound and shaped by lower highs and relatively equal lows. The descending resistance and horizontal support have provided a consistent framework. The narrowing wedge pattern has seen historical use in forecasting 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.