3 Reasons Why Polkadot’s Price Could Experience an XRP-Like Surge

Polkadot (DOT), once a top contender in the crypto space, has been struggling with underperformance compared to other popular cryptocurrencies like Solana (SOL), Binance Coin (BNB), and Tron (TRX). For over three years, Polkadot has been in a consolidation phase, moving between $3.85 and $11.7. This stagnation has caused Polkadot to lose its place within the top ten cryptocurrencies, falling to the 22nd position and being overtaken by newer tokens like Hyperliquid, Sui, and Toncoin. Despite this, there are three major reasons why Polkadot could break out of its long consolidation phase, similar to the recent surge of XRP.

Spot Polkadot ETF Approval Potential: One significant factor that could trigger a Polkadot price surge is the potential approval of a spot Polkadot Exchange-Traded Fund (ETF). Earlier this month, 21Shares filed for a spot Polkadot ETF, which could open the door to institutional investment in DOT. The U.S. Securities and Exchange Commission (SEC) has shown signs that it might be more favorable toward crypto under a new administration led by Donald Trump, potentially speeding up approval for such ETFs. If the SEC approves a spot Polkadot ETF, it would expose Polkadot to mainstream investors on Wall Street, possibly driving up demand and price, much like the surge seen in other cryptocurrencies like XRP and Litecoin that have had a higher chance of ETF approval. As Polkadot remains near its all-time low, it could be poised for a significant price rally if this approval comes to fruition.

Polkadot JAM Upgrade: Another key catalyst for Polkadot’s potential price rise is the migration to Polkadot 2.0, which includes the Joint-Accumulate Machine (JAM). JAM aims to merge the strengths of Polkadot with those of Ethereum, creating a more robust ecosystem for decentralized applications (dApps) and blockchain innovation. One of the key goals of Polkadot 2.0 is to replace the existing Relay Chain and overcome the limitations of the current parachain system. The cost of launching a parachain and the restrictions around parachain auctions have been significant hurdles for Polkadot. The introduction of JAM will allow developers to build directly on Polkadot without going through the parachain process, making it more accessible and scalable. Polkadot’s impressive transaction capacity of over 140,000 transactions per second (TPS) — far surpassing Solana’s 3,000 TPS — will further attract developers seeking faster, more efficient blockchains for their applications. These upgrades could lead to increased demand for DOT tokens and potentially higher prices as the platform becomes more developer-friendly and scalable.

Strong Technicals and Wyckoff Theory Accumulation: From a technical perspective, Polkadot’s chart suggests strong potential for future growth. DOT has remained within its consolidation range of $3.85 and $11.7 for the last three years, recently testing the lower end of this range. This type of price action is often associated with an accumulation phase, according to the Wyckoff Theory, which suggests that when prices consolidate over an extended period, it is a sign of accumulation before a possible breakout. Following this theory, a breakout above the $11.7 resistance could lead to a significant price increase as more buyers enter the market. If Polkadot experiences a strong rally, the initial target would be around $23.5, which represents a 38.2% retracement level. This would mark a 365% increase from its current price levels, showing substantial upside potential for investors.

In conclusion, while Polkadot has been in a consolidation phase for some time, the potential approval of a spot ETF, the upcoming JAM upgrade, and its technical chart patterns suggest that it may be poised for a breakout. These factors combined could propel Polkadot back into the spotlight, much like what we’ve seen with XRP in recent weeks. As Polkadot becomes more developer-friendly and potentially gains institutional exposure, its price could experience significant growth in the near future.