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Polkadot has managed to stay above its critical support level of $3.60, even as Bitcoin and other cryptocurrencies experienced significant price drops. The token recently dipped to $4, but it didn’t fall below the important $3.60 support level, which has proven to be a strong price floor since 2022.
There are two key factors supporting Polkadot’s price stability. First, Grayscale and 21Shares have filed for a spot DOT exchange-traded fund (ETF), which is expected to attract institutional investors, particularly from Wall Street. This could boost demand for Polkadot and increase its liquidity, much like what has been seen with Bitcoin and Ethereum ETFs, which have collectively attracted $40 billion in assets.
Second, the price has remained steady as the Polkadot network prepares for its highly anticipated Polkadot 2.0 upgrade. This upgrade will introduce several important changes, including agile coretime, elastic scaling, and asynchronous backing. These features aim to reduce block times to just six seconds and enable dynamic scaling, positioning Polkadot as one of the fastest layer-1 networks in the crypto space.
Polkadot 2.0 will also include an Ethereum Virtual Machine (EVM), allowing developers to build decentralized applications (dApps) more easily, bypassing the complex and costly parachain auction process. The addition of JAM will further enhance Polkadot’s capabilities, enabling it to transition from being a purely interoperable blockchain into a comprehensive Web3 application development platform.
From a technical analysis perspective, Polkadot’s price chart shows the token has formed a quadruple bottom at the $3.60 support level. This pattern is typically seen as a bullish indicator, suggesting that the token has strong support and could be poised for a significant rebound. Additionally, Polkadot has formed a small falling wedge pattern, which often precedes a price reversal as the two trendlines converge.
If this technical pattern plays out, Polkadot’s price could surge. The first price target for this potential move is $11.72, which represents a 170% increase from the current price. The second target, based on a 38.2% retracement level, is $23.80, indicating further upside potential.
