Polkadot Price Analysis

Polkadot price remained above its make-or-break level this week as Bitcoin and most cryptocurrencies crashed.

Polkadot (DOT) fell to a low of $4, slightly higher than the critical support level at $3.60, where it has failed to drop below several times since 2022.

The token has held steady above this support level for two main reasons. First, Grayscale and 21Shares have filed for a spot DOT exchange-traded fund, which they hope will attract Wall Street investors.

Spot Bitcoin (BTC) and Ethereum (ETH) ETFs have performed well among investors, gathering a combined $40 billion in assets.

Second, Polkadot price has remained steady as the network prepares to launch Polkadot 2.0, which will introduce new features like agile coretime, elastic scaling, and asynchronous backing.

The upgrade aims to reduce average block times to just 6 seconds and allow dynamic scaling, making it one of the fastest layer-1 networks in crypto.

Polkadot 2.0 will also lower barriers for developers by introducing an Ethereum Virtual Machine (EVM), enabling dApp development without the expensive parachain auction process.

Additionally, the upgrade will feature JAM, transforming Polkadot into a complete suite for building all types of Web3 applications.

> Dr. Gavin Wood
> – Authored Ethereum yellow paper in 2014
> – Authored Polkadot white paper in 2016
> – Released JAM gray paper in 2024
>
> Foundation of future Polkadot 2.0 ⭕️
> Combination of strengths from Polkadot & Ethereum
>
> A Mega Thread on the future of Polkadot 🧵
>
>
>
> — Emil Kietzman🐂⭕️ (@EmilKietzman) April 18, 2024

Polkadot Price Analysis

The weekly chart illustrates that the DOT price avoided dropping below $3.60, despite altcoin declines.

This price level is significant as DOT has formed a quadruple bottom since 2022—an encouraging technical analysis signal.

Polkadot has also formed a small falling wedge pattern, with two converging trendlines nearing confluence, indicating a potential rebound.

The initial price target is $11.72, the highest swing from November last year, representing a 170% increase from current levels. The second target is $23.80, aligning with the 38.2% retracement level.

Read more: NFT sales plummet 28.9% to $107m, Pudgy Penguins sales drop 80%