Polkadot (DOT) is gaining major regulatory clarity as the U.S. Securities and Exchange Commission (SEC), has officially classified DOT as a digital commodity under its latest crypto assets interpretation released this week (Rel. Nos. 33-11412 / 34-105020).
The decision removes DOT from security classification under federal securities laws and places it alongside major assets such as Bitcoin and Ethereum.
This is an important regulatory milestone for Polkadot. It enhances the clarity of the regulations and boosts confidence. It is perceived by the players in the market as an improvement towards the acceptance of the Polkadot system.
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The daily chart of the DOT price, based on the crypto analyst known as Nehal, indicates a downtrend following the rejection at the price of $3.70, forming lower highs and lower lows.
In the latest development, the price compressed in a symmetrical triangle at the price of $1.50. In a bullish scenario, a break past the resistance line of the triangle might push the price towards a target of $2.70.
If the buying momentum persists, DOT might extend its run to a range of $3.70-$3.80, which coincides with a 135% measured move in line with the chart.
On the other hand, failing to break higher could create room for a continued fall under the support of $1.50, and the price could extend its fall to the region of $1.20.
The price could extend its fall further to the region of $1.00, where there is a demand zone. The volume profile indicates significant overhead resistance.
From an indicator perspective, the RSI-14 is currently trading at 49.86, and its MA is close to 50.84, indicating neutral momentum for this indicator.
It is trading in the middle region, neither in overbought nor oversold territory. Currently, it appears that the bulls are losing power as the RSI is trying hard to stay above 50.
The MACD (12, 26, 9) indicator has a reading of 0.01475 on the MACD line, 0.00971 on the signal line, and 0.00504 on the histogram.
This technical analysis plot is slightly positive, yet the histogram bars are shrinking, indicating that the positive push may not last for much longer, and a phase of consolidation or a brief change in direction may soon occur.
More defined regulations may attract institutional investors, reduce legal complexities, and increase long-term confidence levels for DOT.
With an improved market structure and breakout potential, the price may surge due to the momentum effect, to a range of $2.70 to $3.70.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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