Despite Polkadot‘s current price being 40% lower than its peak in December, an unusual chart formation on the daily graph suggests a significant price surge is imminent.
In simpler terms, despite being a significant player in the layer-1 network scene, boasting a market capitalization of around $11 billion and offering a staking reward of 12%, Polkadot (DOT) has not lived up to expectations compared to other major cryptocurrencies during recent years.
It’s quite possible that this performance lags behind other platforms such as Solana (SOL) and Ethereum (ETH), largely because it doesn’t have the same level of visibility in its ecosystem. Solana, for instance, has garnered significant attention due to its association with meme coins and well-known decentralized exchange networks like Raydium and Orca.
Conversely, Ethereum boasts a broad ecosystem teeming with applications like AAVE and Compound, along with countless ERC tokens that leverage its technology.
Under the Polkadot 2.0 project, Polkadot is striving to expand its capabilities to accommodate various applications by enhancing its asset hub. This enhancement will enable compatibility with Ethereum Virtual Machine and smart contracts written in Solidity, broadening the network’s functionalities.
Polkadot is set to incorporate elastic scaling, allowing developers to adaptively modify transaction processing speed, and implement a uniform address system. Additional significant enhancements slated for this year include making DOT tokens the standard fee currency used across all connected chains (parachains).
The developers anticipate that these enhancements will position Polkadot as the preferred blockchain platform for developers working within sectors like gaming and decentralized finance.
It appears that these projects are showing positive outcomes as evidenced by a significant increase in Tether and USD Coin within their ecosystem’s parachains. Over the last year, this figure has risen by approximately 400%, amounting to over $114 million.
Polkadot, like other U.S.-based cryptocurrency initiatives, stands a potential chance of gaining favor under the Trump administration. It’s possible that Polkadot could be among the digital assets granted approval for spot Exchange Traded Funds (ETFs). President Trump has hinted at the possibility of integrating some American crypto projects into the U.S. reserve.
Polkadot price technical analysis
Today’s graph indicates that the DOT price appears to have created two potential chart formations that might lead to an increase in the short term. One of these formations is a double bottom at $6, which is generally seen as a strong signal for a bullish surge.
Polkadot’s chart shows a pattern known as a falling wedge, which is created by two lines that slope downwards and gradually come closer together. This pattern suggests that after a period of decline, the price might be about to reverse its trend. Additionally, it has surpassed its 100-day moving average, indicating that the bulls are regaining control in the market.
Consequently, it’s expected that the value of the coin could surge past its resistance point, with the significant marker to focus on at around $11.65 – a peak reached on both December 4th and 6th, representing a potential 60% increase from the current price level.
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2025-01-16 19:52