- Analyst predicts that tokens from large chain ecosystems may rise 10 times if the market cycle is validated.
- DOT is currently oversold, hence, it could start rising as predicted by the analyst.
- The falling wedge pattern could help Polkadot reach $7.
Full-time trader and crypto analyst Jackis stated that if the market is nearing a retracement from the depression phase, then, tokens belonging to big chain ecosystems would increase by 10 times. Furthermore, he named tokens such as Avalanche (Avax), Solana (SOL), Polkadot (DOT), and Arbitrum (ARB).
The depression phase of the market has been derived from the Psychology of a market cheat sheet. As per the sheet, the market goes through different stages according to the trader’s sentiments. It goes through a Hope phase where traders accumulate cryptocurrencies hoping for a surge followed by a phase of Optimism. Thereafter, the Optimistic phase is followed by Belief and Euphoria after which the market starts to lose value.
As per the chart shown above Polkadot seems to be going through the depression phase. Hence, if this is validated then DOT has a high chance of reaching the $10 resistance level. Moreover, to supplement the above thesis, it has touched the lower Bollinger band, as such, DOT could rise. However, in the event it falls, there seems to be no support below $4.200.
Interestingly, as correctly pointed out by Jackis, if this is the depression phase DOT could reach 10 times its value and reach somewhere close to resistance at $46.5.
The chart above shows that DOT has been moving inside a falling wedge since the beginning of 2023. Currently, after touching the lower trendline, DOT is rising. As per the conventional breakout, DOT is bound to rise close to $7. This is because a conventional breakout would mean that DOT would rise by the same height as the wedge after breaking out.
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