Polkadot's price is still 40% below its December high, but a rare chart pattern on the daily chart suggests a strong recovery.

dotted (a point), a leading tier-one network with a market capitalization of $11 billion and a 12% ROE, has underperformed large-cap cryptocurrencies over the past few years.

This performance is likely because its ecosystem is less prominent compared to other chains like Solana (Sol) and Ethereum (Ethereum). Solana is widely known for its coins and popular decentralized exchange networks such as Raydium and Orca.

On the other hand, Ethereum is known for its comprehensive ecosystem, which includes decentralized applications such as AAVE and Compound, as well as several ERC tokens that rely on its technology.

Polkadot is changing this as part of Polkadot 2.0 initiativewhich aims to scale the network for a wide range of use cases. This includes upgrading its Asset Center to support the Ethereum virtual machine and Solidity-based smart contracts.

Polkadot will also offer elastic scaling, enabling developers to dynamically adjust throughput, and a unified address format. Other major upgrades planned this year include the use of DOT as the global toll symbol across all canopy series.

The developers hope that these upgrades will make Polkadot the blockchain of choice for developers in industries such as gaming and decentralized finance.

There are signs that these initiatives are beginning to bear fruit. For example, the amount of Tether and USD tokens within its ecosystem chains has increased by 400% over the past 12 months, reaching over $114 million.

https://twitter.com/Polkadot/status/1879818655128555539

Polkadot is also an American cryptocurrency project that could benefit from the Trump administration. For example, it may be a project that received immediate approval from the ETF. Trump has indicated that he may be open to listing some US cryptocurrency projects on the US reserve.

Technical analysis of Polkadot price

The daily chart shows that DOT price has formed two chart patterns that may push it higher in the near term. It formed a double bottom pattern at $6, a widely recognized formation that often leads to bullish breakouts.

Polkadot also formed a falling wedge pattern, which features two descending and converging trend lines. It has moved above the 100-day moving average, which is a sign that the bulls are gaining control.

As a result, the coin is likely to see a bullish breakout, with the next key level to watch being $11.65, its swing high on December 4 and 60% above the current level.