Polkadot (DOT) Bounces Back 10%, Government Regulations Unlikely to Affect Altcoin
• Polkadot (DOT) has seen a 10% weekly gain, bringing its 30-day losses down to 11.4%.
• Technical indicators suggest that DOT’s surge might be short-lived.
• Polkadot could be safe from looming government regulations due to the Web3 Foundation’s statement that it is no longer a security.
Polkadot (DOT) has been on a rollercoaster ride of late, but the altcoin is currently riding a solid bullish momentum that enabled it to remain in the green for the past 24 hours and achieve some significant gains in the last seven days. According to tracking from Coingecko, at the time of writing, DOT is changing hands at $4.69, recording a weekly hike of 10%. This brings its 30-day losses down to just 11.4%, although it is still some way off its all-time high value of $54.98%.
However, although this news may be encouraging to DOT holders, they need to be cautious as some of its technical indicators are warning that the coin’s surge might be short-lived. For instance, its Relative Strength Index (RSI) is currently hovering at the 50% region, which could soon lead to strong selling pressure.
Nevertheless, Polkadot could be safe from the looming threat of government regulations that are now being considered to better regulate ownership, selling, buying, trading and use of cryptocurrencies. This is due to a statement from the Web3 Foundation that the altcoin is no longer considered a security. This was in response to the collapse of the FTX exchange platform which led to investors losing a lot of money, as well as the continued proliferation of crypto scams.
The good news for Polkadot is that this means it is unlikely to be choked by the same strict regulations that could affect other coins. However, its future trading price is still uncertain, and investors should remain aware of the risks associated with cryptocurrencies.