Polkadot (DOT) looks ready to extend its ongoing price recovery due to a classic bullish pattern forming on its daily chart.
DOT paints “cup and handle” pattern
Notably, DOT has been forming a “cup and handle” pattern since mid-June, confirmed by its price crashing and recovering in a rounding, U-shaped trajectory (cup), followed by the development of a trading range on the right-hand side (handle).
DOT/USD daily price chart featuring “cup and handle” breakout setup. Source: TradingView
Cup and handle patterns are typically bullish continuation setups that form during an uptrend. But in rare cases, they appear at the end of a downtrend, leading to a bullish price reversal. As a result, the possibility of DOT continuing its price recovery seems high.
Thus, from the technical perspective, DOT initially eyes