The recent market downturn has significantly impacted Polkadot (DOT), causing the altcoin to lose approximately 15% over just two days. However, on July 6, the price began to rebound, increasing by 9.67% to reach its current level of $6.24. Despite this recovery, DOT has experienced a substantial decline of 47.47% from its April 1 peak of $11.88. Ongoing discussions about a potential ETF could lead to positive changes for the cryptocurrency.
A DeFi researcher and crypto analyst, 0xNobler, recently revealed on X that Coinbase has secret plans for a DOT ETF. His post indicated that the well-known cryptocurrency exchange is in the early stages of applying for the DOT ETF, with the first approval stage scheduled for July 15. On June 28, Coinbase made significant moves by applying for DOT Futures Contracts, a Futures ETF, and a Spot ETF.
Polkadot, a well-known network, is expected to have a highly successful ETF, according to its supporters. This announcement has already caused a significant increase in activity on Coinbase Derivatives. If the DOT ETF gets approved, it could significantly boost DOT’s price, providing a much-needed lift amid the recent market struggles.
Bullish Reversal in Polkadot
The analyst from ZAYK Charts recently analyzed DOT’s current trends in a one-day timeframe and provided a compelling forecast. He identified a falling wedge formation, often indicative of a potential bullish reversal, characterized by converging trendlines that slope downwards and encapsulate lower highs and lower lows.
The falling wedge pattern typically signals a bullish outlook, suggesting that while sellers have been in control, their influence is waning. Polkadot has been oscillating within this pattern since its peak in February, with the lower boundary consistently providing support and the upper boundary acting as resistance.
ZAYK anticipates a breakout from this wedge, which usually leads to a significant upward price movement. The breakout is expected when the price decisively breaches the upper trendline of the wedge, signaling a shift in market sentiment from bearish to bullish and potentially leading to a strong rally.
The analyst’s breakout target is around $9.60, representing a potential gain of approximately 56.13% from the current price level. The chart highlights this target zone in a green box. However, the timing of this expected breakout is critical. As Polkadot continues to trade within the narrowing wedge, the pressure builds, making a breakout more likely.
ZAYK’s insight suggests that traders should closely monitor the price action around the upper trendline for signs of increased buying pressure. The potential approval of a DOT ETF, coupled with this bullish chart pattern, sets the stage for a possible significant rally for Polkadot in the near future.
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