Polkadot (DOT) price consolidation points to a potential rebound as development activity rises

Polkadot (DOT) token continues to consolidate at a crucial support level, which could pave the way for a strong rebound.

According to Santiment data, the number of commits in the Polkadot network soared on Wednesday, reaching 53.6—the highest level since April 14. This marked a significant increase from this month’s low of 31.8.

Meanwhile, seven-day development activity rose by 25.7% to 314. Similarly, activity in Kusama (KSM), its canary network, also jumped by over 25% in the same period.

These numbers make Polkadot and Kusama some of the most active chains in terms of Github activity after Internet Computer (ICP), Filecoin (FIL), and Cardano (ADA).

This uptick in development is likely linked to the ongoing transition to Polkadot 2.0. Two of the three major components have already been implemented: agile coretime and asynchronous backing.

Agile coretime replaces the parachain slot auction system with an on-demand blockspace model, and asynchronous backing reduces block time to just six seconds.

Now, developers are working on the third phase: elastic scaling, which introduces dynamic resource allocation, allowing parachains to scale based on demand.

Polkadot price technical analysis

The DOT price bottomed around $3.5, where it has failed to drop since November 2023. It has formed a triple-bottom chart pattern whose neckline is at $11.70, its highest swing on December 2 last year.

The last time Polkadot dropped to this level was in November, after which it surged by 187%. Prior to that, it rebounded nearly 200% to its peak on March 13, 2023.

The two lines of the Percentage Price Oscillator have formed a bullish crossover. Additionally, the Relative Strength Index has been trending upward.

Therefore, the outlook for Polkadot is bullish, with the key target being the December high at $11.63. This bullish view remains intact as long as DOT holds above the support level at $3.50.