DOT: Descending Pattern Analysis and Breakout Opportunity

The Polkadot (DOT) is trading at $2.07 with a gain of +0.29% in the last 24 hours. The daily chart shows a descending structure characterized by decreasing highs and lows, which indicates a progressive selling pressure in the market.

What is Descending in Technical Analysis

When we talk about a pattern that is descending, like the descending triangle, we refer to a formation where the upper resistance line slopes downward while the lower support remains relatively horizontal. This setup suggests bearish weakness and accumulation of selling pressure.

Break Point and Price Projection

DOT is at a critical moment. If it manages to break the descending trendline and consolidates above the key resistance, we could see a quick upward movement of 30% in the short term. Such a breakout often leads to a sharp acceleration once confirmed, especially when it comes from contractionary structures like the one being observed.

Validation of this breakout requires confirming volume and a sustained close above the critical level. Traders and analysts are closely monitoring this situation, as breaking a descending pattern often triggers significant impulsive movements.