Polkadot (DOT) has struggled in 2024, but emerging technical patterns suggest a potential rebound in 2025.
After a significant retreat of over 15% this year, Polkadot stands apart from other leading cryptocurrencies, such as Bitcoin, Solana, and Binance Coin, which have all reached their all-time highs.
Despite its price decline, Polkadot’s ecosystem has thrived with notable launches. The decentralized exchange Hydration recorded over $124 million in transaction volumes in December, showcasing the network’s vibrant activity.
The digital collectible card game NFL Rivals has gained popularity, boosting NFT trading within the Polkadot ecosystem. Bifrost, a liquid staking network, attracted over $15.1 million in assets, while the lending protocol Moonwell almost reached $200 million in total value locked.
On-chain analytics reveal a growing number of transactions on Polkadot, recently reaching record highs.
In December, Polkadot recorded 8.52 million transfers, slightly down from November’s 9.11 million. However, the total transactions for the fourth quarter were at an all-time high, underlining the network’s robust engagement, particularly within its relay chain.
Polkadot provides one of the highest staking yields among major cryptocurrencies, boasting a 12% yield with a staking ratio of 25.13%. These strong fundamentals could fuel a price recovery in the upcoming months.
Bullish Signals for Polkadot
Recent analysis indicates that Polkadot’s price has retraced from a high of $11.70 to approximately $6.80 recently.
The price has remained above the crucial 100-day and 200-day Exponential Moving Averages, hinting at potential positive momentum. A bullish “cup and handle” chart pattern has also formed, with the current price retreat representing the ‘handle’ of this pattern.
Furthermore, a falling wedge pattern has emerged, a well-regarded bullish reversal indicator. As these two lines converge, a bullish breakout is anticipated, potentially propelling DOT towards its year-to-date high of $11.68, representing a possible 72% increase from its current price.
