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The Polkadot price is bouncing back today after a difficult few days. The DOT price is trading at $16.32, which is higher than this week’s low of $15.06. Today, the currency is worth more than $14.8 billion. This makes it the fourth-biggest digital currency in the world after Bitcoin, Ethereum, and Tether.
The strong performance by Polkadot is mostly because of its huge potential in the development of Decentralized Applications (dApps). The blockchain network allows the development of applications.
Some of its key advantages are its true interoperability and the fact that the network is forkless and future-proof. Also, as a relatively new network, it is said to be relatively faster and stronger than the existing competitors.
Although its mainnet was launched last year, Polakdot has become popular, as shown below. Some of its popular projects are Kusama, Edgeware, and Sora. Kusama is now the 44th largest cryptocurrency with a market cap of more than $879 million.
On the four-hour chart, we see that the Polkadot price has been in consolidation mode recently. It has formed a rectangle pattern whose support and resistance levels are at $14.83 and $19.30, respectively. The gap between the two is about 30%. And it seems like a bullish flag pattern.
Therefore, in my view, the price will remain inside this channel for a while and then break above the resistance. If this happens, the next level to watch will be $25. On the flip side, a major break below the support at $14.83 will invalidate this trend.
