The digital asset market wants to enjoy the fruits of the coming developments spot Ethereum ETF approval. Indeed, the US Securities and Exchange Commission (SEC) is leaning towards approving the investment vehicle by the end of the week. One asset that could benefit is Polkadot (DOT) as it targets $9 on a bullish stretch.
DOT is currently trying to convert $8 into aid. After a series of corrections plaguing the cryptocurrency, Polkadot is trading at $7.56, up more than 9.6% in the past seven days, according to CoinMarketCap. However, these gains could only increase as the market predicted a boom.
Also read: Polkadot May Price Prediction: Can DOT Hit $10?
Polkadot Eyes Critical recovery on the way to new rally
The digital asset sector is currently on the cusp of another massive market-wide rally. The SEC is on the verge of approving a host of spot Ethereum ETFs, which could be another game changer for the sector. The price movement could follow a similar path as after spot Bitcoin ETFs were approved in January.
This development led to the market's top assets reaching an all-time high of $73,000 just three months after issuance. Furthermore, it proved to be a rising tide, with a glut of tokens leading to notable gains. With experts projecting Ether ETFs pushing ETH to new highsthis could have a similar effect.
One asset that could benefit the most is Polkadot (DOT), which is targeting $9 amid the looming bullish turn for the crypto market. The asset appears to have remarkable momentum, with open interest (OI) and futures options increasing by more than $63 million, according to MintGlass.
Also read: Polkadot confirms major trend break: will DOT increase by 35% by the end of May?
While this in itself is not necessarily bullish, it does indicate that long contracts are outperforming short contracts. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing bullish trajectories. The indicator shows how two moving averages interact and influence buying or selling decisions.
The MACD has avoided a bearish designation twice during May. Moreover, it could consolidate the impending gains if the assets can reverse the $8 level from their current position.
If successful, it could be well on its way to the 22% gain needed to break the $9 barrier. However, the opposite could still happen, leading to a drop below $7. However, there is tremendous optimism given the continued positivity that the market could see in the coming week.