Popular crypto strategist and trader Justin Bennett says a strong breakout is on the horizon for interoperability blockchain Polkadot (DOT).
In a new strategy session, Bennett says that Polkadot’s price action is coiling as it trades within a bullish continuation pattern.
“The fact that this is a falling wedge, which is inherently a bullish pattern, and we also have the market in a macro uptrend, I do have reason to believe that this is more likely to break higher than lower.”
According to Bennett, he sees Polkadot ending its short-term downtrend and breaking out of the falling wedge by the second week of February.
Looking at potential targets for Polkadot, the crypto analyst believes that DOT can potentially ignite a 78% surge once it takes out the diagonal resistance of the wedge.
“Is the market going to break higher? I personally think that there’s a very good chance it will, and if it does, the area I’m going to be targeting is up here. The first ones would be $32, $38 and $45.”
At time of writing, Polkadot is trading at $25.22.
While Bennett is long-term bullish on DOT, he sees the crypto asset significantly correcting in the coming days before rallying and hitting his targets.
“Don’t be surprised if we get something like this, where DOT breaks out of its terminal pattern to the upside, retests support [$20] maybe, breaks out from here and then starts to move higher up toward $32, $38 and $45 and eventually later this year we get a move up here into this resistance area [$65].”