The Polkadot price rose for two straight days, reaching its highest point since March 2, as sentiment in the crypto market improved. It also jumped after the developers achieved a key Polkadot 2.0 milestone.
Polkadot (DOT) token jumped to a high of $5.10 on Saturday, up by 60% from its lowest point this year. The rally happened in a high-volume environment, with the intraday volume jumping to $443 million.
Polkadot soared, mirroring the performance of the crypto market. Bitcoin (BTC) price jumped to $104,000, while Ethereum (ETH) targeted the key resistance point at $2,500. The crypto fear and greed index moved to the greed zone of 71.
Polkadot also jumped as the developers launched elastic scaling on Kusama (KSM), its canary network. Elastic scaling is the final stage of the ongoing Polkadot 2.0 upgrade, which has been going on since last year.
It will help improve Polkadot’s throughput and reduce latency, which will help it meet any demand. When implemented on Polkadot, elastic scaling will make it one of the fastest blockchains, with block times of less than 2 seconds.
Elastic scaling will join asynchronous backing and agile coretime, which were implemented last year. Async backing introduced parallel transaction validation, which increases transaction throughput by allowing 4x more data per storage block.
Agile coretime was an important upgrade that made Polkadot more accessible to developers by replacing the parachain auction model with a more dynamic, on-demand core allocation system. The parachain auction model was expensive for developers.
Polkadot price will also benefit from the ongoing changes at the Securities and Exchange Commission. The agency, under Paul Atkins, is expected to be more open to approving spot crypto ETFs, including DOT funds by Grayscale and 21Shares.
Polkadot price analysis
The three-day chart shows that the DOT price found strong support at $3.60, a level it has failed to move below since November 2023. It has formed a triple-bottom pattern, a popular bullish reversal pattern whose neckline is at $11.56.
Polkadot price has formed a small inverse head and shoulders pattern. Also, its top oscillators, like the Relative Strength Index and the MACD indicators, have pointed upwards, a sign that it is gaining momentum.
Therefore, the DOT price will likely continue rising as bulls target the next key resistance level at $11.5, up by 126% from the current level. A drop below the support at $3.60 will invalidate the bullish outlook.
