DOT Token: Software, Not Security
Polkadot is an open-source protocol that facilitates cross-blockchain transfers of any type of data or asset, earning its reputation as a “blockchain of blockchains.” It allows users to create customized blockchains on the Polkadot network, which can be upgraded without requiring hard forks as new technologies become available.
Founded in 2016 by Gavin Wood (co-founder of Ethereum), Peter Czaban, and Robert Habermeier, Polkadot is dedicated to building a decentralized web where users control their data and identity. The DOT cryptocurrency underpins the network, enabling holders to vote on upgrades proportionally to their staked amount.
Daniel Schoenberger, Chief Legal Officer of Web3 Foundation, recently announced that the DOT token is now classified as software rather than a security, following three years of discussions with the U.S. SEC. This landmark achievement marks DOT as a pioneering altcoin with this designation, celebrated by the Polkadot community.
Technische analyse van Polkadot (DOT)
Since April 02, 2022, Polkadot (DOT) has dropped from $23.55 to $5.66, with its current price standing at $6.70. Market-wide selling pressure, largely triggered by FTX Token’s (FTT) decline, has also affected Polkadot.
Recent price action shows DOT trading within a range of $6-$8. As long as the price stays below $10, Polkadot remains in the SELL-ZONE.
Belangrijkste ondersteunings- en weerstandsniveaus voor Polkadot (DOT)
Analyzing the chart from March 2022, key support and resistance levels are evident. If DOT breaks above $9, it may target $10 as the next resistance. Current support sits at $6; a breach could signal a drop toward $5. A move below $4, a robust support level, may open the door to $3.
Factors Supporting a Polkadot (DOT) Price Increase
The reclassification of DOT as software is a positive development, but broader market conditions limit its upside potential. Polkadot’s price remains closely tied to Bitcoin. A rise in Bitcoin above $22,000 could push DOT to higher levels.
Signals Pointing to Further Polkadot (DOT) Price Declines
Market pressures, including FTX Token’s decline and weak demand, have driven DOT down over 85% from its all-time high. The macroeconomic environment remains bearish, posing continued risks for further declines.
Expert Opinions on Polkadot (DOT)
While Daniel Schoenberger highlighted DOT’s reclassification, analysts remain cautious. Mike Novogratz, CEO of Galaxy Digital, predicts further declines in cryptocurrencies. Craig Erlam, Senior Market Analyst at Oanda, suggests that significant crypto recovery may only occur after the Federal Reserve eases monetary policy.
Disclaimer: Cryptocurrencies are highly volatile and unsuitable for everyone. Never trade with funds you cannot afford to lose. Information is for educational purposes and not investment advice.
