Polkadot price was the late cap cryptocurrency in 2024, but a rare chart pattern points to a strong rebound in 2025.
Bulkdout (a point() fell by more than 15% this year, while other major currencies such as Bitcoin (Bitcoin), Solana (Sol), and Binance Coin (BNB Bank) to its highest levels ever.
The coin's underperformance occurred even when its network saw successful ecosystem launches. For example, Hydration, a leading decentralized exchange within the Polkadot ecosystem, handled a record high volume of over $124 million In December.
Polkadot's NFL Rivals, a digital collectible card game, has gained traction among NFT traders. Meanwhile, Bifrost, Polkadot's liquid storage network, has piled up More than $15.1 million in assets, while Moonwell, the lending protocol, has a total value of about $200 million.
On-chain data also shows that the number of transactions on Polkadot has continued to rise, reaching a record high this week.
According to The Block, Polkadot saw 8.52 million transfers in December, down slightly from 9.11 million in November. However, the conversions in The fourth quarter has arrived All-time high, indicating strong activity on the network. Similar growth was observed in the migration chain, where active addresses and conversions increased.
Polkadot also offers one of the highest staking returns among major cryptocurrencies, with a yield of 12% and a staking ratio of 25.13%. These strong fundamentals may support a price recovery in the coming months.
Polkadot price formed a falling wedge
The daily chart indicates that the price of DOT has been declining over the past few weeks, falling from this month's high of $11.70 to the current $6.8.
The Polkadot index remained above the 100-day and 200-day EMAs, indicating positivity. It has also formed a cup and handle chart pattern, where a steady decline represents the handle.
In addition, a falling wedge pattern, a well-known bullish reversal indicator, has emerged. As the two wedge lines approach their meeting point, the price is likely to see an upward breakout. This could push DOT to a YTD high of $11.68, roughly 72% above its current level.
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