Polkadot price was the biggest laggard large-cap cryptocurrency in 2024, but a rare chart pattern points to a strong rebound in 2025.
Polkdaot (DOT) retreated more than 15% this year, while other major coins such as bitcoin (btc), Solana (SOL), and Binance Coin (BNB) soared to their all-time highs.
The coin's poor performance occurred even as its network experienced successful ecosystem launches. For example, Hydration, a leading decentralized exchange within the Polkadot ecosystem, handled a record volume of over $124 million in December.
Polkadot's NFL Rivals, a digital collectible card game, has gained traction among nft traders. Meanwhile, Bifrost, a liquid staking network on Polkadot, accumulated more than 15.1 million dollars in assets, while Moonwell, a lending protocol, has almost $200 million in total value locked.
On-chain data also shows that the number of transactions on Polkadot has continued to rise, reaching a record high this week.
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According to The Block, Polkadot recorded 8.52 million transfers in December, down slightly from 9.11 million in November. However, transfers in fourth quarter achieved an all-time high, indicating solid activity on the network. Similar growth was seen in the relay chain, where both active addresses and transfers increased.
Polkadot also offers one of the highest staking yields among major cryptocurrencies, with a 12% yield and 25.13% staking ratio. These strong fundamentals may support a price rally in the coming months.
Polkadot price has formed a falling wedge
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The daily chart indicates that the price of DOT has retreated in recent weeks, falling from this month's high of $11.70 to the current $6.8.
Polkadot has remained above the 100-day and 200-day exponential moving averages, indicating positivity. It has also formed a cup and handle chart pattern, with the continuous retracement representing the handle.
Additionally, a falling wedge pattern has emerged, a well-known bullish reversal indicator. As the two wedge lines approach their confluence, the price is likely to experience a bullish breakout. This could push DOT to the year-to-date high of $11.68, about 72% above its current level.
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