Polkadot (DOT) experienced a significant price rally this week, reaching $4.75, its highest level since March. The token’s price has surged by over 45% from its lowest point this year as the broader cryptocurrency market recovered and developers introduced key upgrades to the Polkadot ecosystem.
Why Polkadot Price Surged
The resurgence in Polkadot’s price coincided with a general recovery in the cryptocurrency market. Cryptos like Ethereum, Solana, and Pepe also saw double-digit gains as investor sentiment improved amid easing global risks.
Additionally, the US and UK reached a pivotal trade deal, setting the stage for broader international agreements. The anticipation of a potential US-China trade deal further fueled bullish sentiment, as such a development could reduce recession fears and potentially prompt the Federal Reserve to consider interest rate cuts — a scenario that would likely benefit risk assets like cryptocurrencies.
Elastic Scaling and Polkadot 2.0: A Game-Changer?
Polkadot’s price surge was also driven by the launch of elastic scaling on Kusama, its canary network. This development is a crucial component of Polkadot 2.0, aiming to enhance the network’s throughput by allowing parachains to produce multiple blocks per Relay Chain block.
Elastic Scaling just hit Kusama. (soon @Polkadot)
— kusama (@kusamanetwork) May 9, 2025
Kusama rollups can now auto-scale compute power.
More throughput + lower latency to meet any demand or use case. Zero compromise on security or decentralization.
Millions of users? No prob.
Apps like @playmythical get access… https://t.co/ABR2XN4nsa pic.twitter.com/ZFvICcfaO8
Once fully implemented, elastic scaling is expected to make Polkadot one of the fastest networks in the crypto space, with block times of approximately 2 seconds. Additionally, Agile Coretime will enable parachains to lease extra cores on demand, further boosting scalability.
Also Read: Polkadot (DOT) Breaks 100 & 200 EMA Resistance – Analyst Predicts 60% Upside to $7
Technical Analysis and Key Levels to Watch
From a technical perspective, Polkadot’s price has formed a quadruple bottom pattern on the weekly chart, a bullish signal indicating the potential for further gains. According to the Wyckoff Theory, DOT has entered the accumulation phase, characterized by low volume and consolidation.
The next key resistance level to monitor is $11.50, the highest point reached in December last year. A decisive breakout above this level could signal a continuation of the bullish trend. However, a drop below the $3.5 support level would invalidate the bullish outlook, suggesting a possible reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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