Polkadot price stuck at a key support, pointing to a 170% surge

Polkadot price remained above its make-or-break level this week as Bitcoin and most cryptocurrencies crashed. 

Polkadot (DOT) fell to a low of $4, slightly higher than the critical support level at $3.60, where it has failed to fall below several times since 2022.

The token has held steady above this support level for two main reasons. First, Grayscale and 21Shares have filed for a spot DOT exchange-traded fund, which they hope will be popular among Wall Street investors.

Spot Bitcoin (BTC) and Ethereum (ETH) ETFs have done fairly well among investors, as they attracted a combined $40 billion in assets. 

Second, Polkadot price has remained steady as the network prepares to launch Polkadot 2.0 which will introduce new changes. It will introduce features like agile coretime, elastic scaling, and asyncronous backing. 

The upgrade’s goal is to reduce the average block time to just 6 seconds and allow dynamic scaling, which will make it one of the fastest layer-1 networks in the crypto industry.

Polkadot 2.0 will also lower the barriers to developers aiming to build on the chain. It will do that by introducing an Ethereum Virtual Machine, or EVM, which will enable developers to build dApps without going through the expensive and time-consuming parachain auction process. 

Polkadot 2.0 will also have JAM, which will enhance its capabilities, transforming it from an interoperable blockchain into a complete suite for building all types of Web3 applications.

Polkadot price analysis

The weekly chart shows that the DOT price avoided dropping below the support at $3.60, even as most altcoins crashed.

That price is a crucial one since DOT has formed a quadruple bottom since 2022. Like a double bottom, a quadruple one is a highly bullish sign in technical analysis.

Polkadot price has also formed a small falling wedge pattern, which happens when there are two falling and converging trendlines. These two lines are now nearing their confluence levels, pointing to an eventual rebound. 

The first target for this price action is $11.72, the highest swing in November last year and 170% above the current level. The second target will be at $23.80, the 38.2% retracement level.