Polkadot price may wake up in 2025 as a rare chart pattern forms

Polkadot price has been the top lagging major cryptocurrency in 2024, but a rare chart pattern is pointing to a strong rebound in 2025.

While Polkdaot (DOT) is down more than 15% this year, other leading cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and Binance Coin (BNB) have soared to all-time highs.

The coin’s underperformance occurred even though its network witnessed successful ecosystem launches. For example, Hydration, one of the Polkadot ecosystem’s leading decentralized exchanges, achieved record volume of over $124 million in December.

Polkadot’s digital collectible card game NFL Rivals has gained traction among NFT investors. Meanwhile, Bifrost, a liquid staking network on Polkadot, has amassed over $15.1 million in assets, while Moonwell, a lending protocol, has a total valuation of nearly $200 million.

On-chain data also shows that the number of transactions on Polkadot continues to rise and reached a record high this week.

Even though Neuroweb operations are offline for the V8 upgrade this week…

Monthly transactions across the Polkadot network are set to hit a new All-Time High. pic.twitter.com/bHCQLW011u

— Jay Chrawnna 🐂⭕️ (@GldnCalf) 30 December 2024

According to The Block, Polkadot saw 8.52 million transfers in December, down slightly from 9.11 million in November. However, transfers reached an all-time high in the fourth quarter, signaling strong activity on the network. A similar growth was observed in the transfer chain, where both active addresses and transfers increased.

Polkadot also offers one of the highest staking returns among major cryptocurrencies, with a 12% return and 25.13% staking rate. These strong fundamentals could support a recovery in prices in the coming months.

Polkadot price falling wedge forms DOT price chart | Source: crypto.news

The daily chart shows that the DOT price has pulled back over the past few weeks, falling from this month’s high of $11.70 to the current $6.8.

Polkadot signaled positivity by remaining above the 100-day and 200-day Exponential Moving Averages. It also formed a cup and handle chart pattern where the ongoing pullback represents the handle.

A falling wedge pattern, a well-known bullish trend indicator, also appeared. As the two lines of the wedge approach their intersection, the price is likely to trend upward. This could push DOT to a year-to-date high of $11.68, about 72% above its current level.