Polkadot (DOT), an out performer throughout the bear market amid the crypto rally, rose 15% in 24 hours. According to CoinGecko data, the token’s price is currently at $5.74 (a 30 percent increase over the past week).
Crypto analyst Ali Martinez estimates DOT’s next price target of $7.50, a potential 30 percent rally from current prices. A ‘bull flag’ pattern that broke out in the four hour Polkadot price chart has been used by Martinez for his projection, an oft used technical formation that can signal continuation of an uptrend.
Polkadot Bull Flag Signals Strong Uptrend
The price will rise sharply (flagpole) then rise somewhat sideways (consolidation phase) after which it will occur before the price breaks free of the consolidation phase. Once the consolidation ends (with a breakout), the pattern tends to give rise to further price gains.
Before its original forecast break from consolidation, DOT’s chart initially looked like a bull pennant, but turned to a confirmed bull flag as it broke out late before predicted. It’s a broader positive sentiment for the parts of the crypto market.
Like many meme coins, Dogecoin, Shiba Inu or Pepe have gone through similar bull runs. Analysts like Martinez maintain, however, that a rise through current resistance levels must be confirmed to validate Polkadot’s potential upward trajectory.
Polkadot’s performance in daily metrics is amazing, but it also holds a top spot position on daily basis in the market. If DOT can reach the projected $7.50 target, it would represent a massive milestone for the altcoin and might indicate that the continuation of the market rally could actually have a bit more legs to it.
Traders of Polkadot are advised to watch closely key technical indicators and resistances as the rally continues but asked if it can sustain its current momentum or whether the market will correct. But altcoin optimism is in vogue as the bear price market turns to the rally.
