After a 30% rally, Polkadot’s price is under pressure again as the countdown to the SEC’s ETF decision begins | Credit: Hameem Sarwar
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Key Takeaways
DOT fell below $5 after a 30% rally, with resistance near $5.30 halting momentum and triggering a pullback to $4.82.
The altcoin’s short-term performance may depend on the upcoming SEC decisions on Polkadot ETF applications.
The 4-hour chart shows DOT below the Ichimoku Cloud, suggesting growing downside risk toward $4.45 or lower.
DOT, the native token of layer-0 blockchain Polkadot, has dropped below $5. This development comes days after Polkadot’s price experienced a 30% increase, driving it to its highest level since Feb. 2.
Interestingly, the pullback also happened as the crypto market awaits a key regulatory decision: whether the U.S. Securities and Exchange Commission (SEC) will approve, delay, or reject pending applications for a Polkadot exchange-traded fund (ETF).
The SEC verdict could impact DOT’s price action outside of the technical outlook. As the decision nears, here is what could be next for the altcoin.
DOT Rally Eases After Breakout
According to the daily chart, Polkadot’s price surged to $5.30 after the cryptocurrency broke out of a falling wedge. The falling wedge is a bullish pattern characterized by two downward trendlines.
The upper trendline represents resistance as the price hits lower highs. The lower trendline, on the other hand, shows lower lows, indicating support.
The recent decline in the CMF reading indicates that accumulation is fading, contributing to the pullback. Due to this position, DOT’s price may continue to slide, with a risk of breaching the key support level at $4.45.
Beyond the technical setup, Polkadot’s short-term outlook also hinges on the SEC’s upcoming decision regarding multiple ETF applications. As CCN reported some time ago, asset manager Grayscale had filed for a spot Polkadot ETF with the decision to be made on June 11.
21Shares faces a similar timeline, with its SEC decision scheduled for June 24. However, regulatory approval remains uncertain, especially after the SEC postponed rulings on Solana (SOL) and Litecoin (LTC) ETF applications.
If approved, Polkadot’s price could see a notable rally as demand for the altcoin might increase.. However, a delay could extend the downward pressure on DOT’s price.
DOT Price Analysis: Still Under Pressure
In terms of its short-term outlook, the 4-hour chart shows that DOT’s recent decline has pushed the price below the Ichimoku Cloud. Typically, the trend is bullish when the price is above the cloud.
The cryptocurrency’s market value might have more legs to run in that case. But this current position indicates that resistance has outpowered support.
Hence, DOT might experience an extended decline. In addition to that, the Relative Strength Index (RSI) has dropped below the neutral point, indicating bearish momentum around the Polkadot coin.
If this trend continues, DOT’s price risks falling below $4. However, if the cryptocurrency breaks above the Ichimoku cloud and the RSI reading jumps, a bullish reversal could send the altcoin in the $6 direction.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
