The cryptocurrency market saw a slight downturn on Friday, with Bitcoin hovering near another potential $100K decline. While broader market sentiment faced downward pressure, Polkadot (DOT) demonstrated resilience, buoyed by increased investor confidence following 21Shares' Polkadot Trust S-1 filing. At the time of writing, DOT trades at $6.387, reflecting a 1.06% intraday gain.

๐ŸŒŸPolkadot Trust Moves Closer to Regulatory Approval๐ŸŽ‰

On January 31, 21Shares officially submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC), seeking approval to launch the Polkadot Trust. The proposal aims to list its common shares on the Cboe BZX Exchange, providing traditional investors with a regulated pathway to gain exposure to Polkadot (DOT). Should the SEC grant approval, the Polkadot Trust could restore investor confidence and drive renewed demand for DOT.

๐ŸšจDOT Faces Key Technical Barriers๐Ÿ’ฅ๐Ÿ’ซ

Despite an overall accumulation phase since May 2022, Polkadot has faced sharp declines, plummeting 45.7% from $11.65 to $6.30 in just two months. The market capitalization has dropped below the $10 billion mark, while DOT's price action remains confined within a rectangle pattern ranging between $11.6 and $3.6.

Historical data suggests that each retest of the $3.6 support zone has triggered a 200% price surge, marking it as a critical accumulation area. However, technical indicators reveal a bearish outlook, with DOT trading below its 100-day and 200-day exponential moving averages. Risk-conscious investors may wait for a decisive breakout above the $11.6 resistance level to confirm a bullish trend reversal.

With market sentiment at a crossroads, all eyes remain on regulatory decisions and macroeconomic factors that could shape Polkadotโ€™s trajectory in the months ahead. ๐Ÿš€

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