Polkadot price drops to a key level: Can DOT surge 225%?

Polkadot price crashed to a crucial support level, pointing to a potential rebound — possibly to its highest point in 2024.

Polkadot (DOT) price dropped to $3.50, a key support level it has failed to break below at least three times since November 2023.

DOT price technicals points to a rebound

The three-day chart shows that Polkadot has fallen to $3.50, down 70% from its December 2023 high. This level previously acted as a launchpad in October 2023, when the price rebounded 230% to $11.85. A similar pattern occurred in November 2023, with a rebound of 220% to $11.63. Most recently, DOT dipped to this support and rallied back to $5.33.

Polkadot has therefore formed a triple-bottom pattern, with a neckline at $11.85. A triple-bottom is considered one of the most bullish reversal patterns in technical analysis.

Based on recent price action, DOT has also formed a smaller double-bottom with a neckline at $5.30. This suggests a likely rebound, potentially retesting the November high of $11.85, roughly 225% above current levels.

However, a decisive drop below the $3.50 support would invalidate the bullish thesis and could open the door to further downside, potentially below $3.00.

Potential catalysts for Polkadot 

Polkadot price has three main potential catalysts that could fuel a triple-digit rally.

First, the final phase of the Polkadot 2.0 upgrade is expected in the coming weeks or months. Elastic scaling, which allows a single parachain to utilize multiple cores, is already being tested on Kusama. 

This builds upon previous upgrades, including agile coretime (which replaced parachain auctions) and asynchronous backing (which reduced block time to six seconds). Together, these improvements are designed to make Polkadot faster and more developer-friendly. Just recently, FIFA Rivals, a popular game, launched on the network.

Second, Polkadot price may benefit from its staking rewards, which are some of the highest in the industry. StakingRewards data shows that DOT token yields 11.8%, higher than Ethereum’s (ETH) 3% and Solana’s (SOL) 7%. 

Finally, DOT could see additional upside if the Grayscale Polkadot ETF gains approval from the Securities and Exchange Commission later this year.