Key Insights
- RSI signaled a reversal trend in Polkadot crypto price.
- Nasdaq has asked the SEC for permission to list the Grayscale Polkadot Trust as an ETF.
- Investors would be exposed to Polkadot’s performance through the ETF without owning tokens.
Polkadot (DOT) price has experienced strong selling pressure since December. In November, the token performed extraordinarily and reached the previous resistance zone of $11. However, Polkadot price failed to hold this zone and witnessed strong selling pressure.
Amid this, Nasdaq has requested permission from the US SEC to list the Grayscale Polkadot (DOT) Trust as an ETF. If approved, this would be the newest addition to Grayscale’s growing portfolio of publicly traded cryptocurrency funds.
The decision was made as asset managers look to take advantage of the market’s growing interest in altcoin ETFs.
RSI Signals Bullish Divergence for DOT Price
Relative Strength Index (RSI) is a technical indicator that helps traders better understand any particular asset. RSI has displayed a bullish divergence in DOT price, which could attract buyers.
RSI has triggered a golden crossover with the RSI-based moving average marked with a yellow circle. The momentum indicator highlighted a bullish forecast for Polkadot price, which could trigger a bullish rally.
Grayscale and 21Shares Seeking Polkadot ETF Approval From SEC
Grayscale has requested the SEC to turn its Polkadot Trust into an ETF to enable wider market participation. Investors would gain exposure without owning any tokens thanks to the proposed ETF, which would track Polkadot’s performance.
The ETF’s request to be listed by Nasdaq showed that institutional interest in Polkadot and altcoins, in general, is growing.
21Shares has also applied for a Polkadot ETF that would trade on the Cboe BZX Exchange and Grayscale. The success of Bitcoin ETFs has encouraged asset managers to launch ETFs that offer investment options beyond Bitcoin and Ethereum.
After receiving the applications, the SEC is starting a review process to decide whether or not trading of these ETFs will begin. Analysts expect the ETF approval to trigger a bullish DOT price rally.
DOT Price on the Verge of Bullish Rally: Can It Proceed?
When writing, Polkadot price was trading at $4.75, which has climbed by 10% in the past 24 hours. The market capitalization was $7.37 Billion, and the 24-hour trading volume was around $347.53 Million.
Based on the technical chart, DOT price has experienced massive selling pressure since December. Amid this bearish trend, the token has dropped to the $4 level but managed to defend it.
Polkadot price has struggled below the 20-day EMA for the past few months. Suppose the price surpasses the 20-day EMA; it could be a bullish signal. If it sustains over the 20-day EMA, buyers might be confident a decent bullish rally can be anticipated.
On the other hand, buyers could be in trouble if DOT price fails to defend the $4 mark. Once the price sustains below the $4 mark, it could be a selling opportunity. Sellers may dominate longer if profit booking takes place.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
