Polkadot faces further declines as ‘Death Cross’ pattern signals bearish trend

Polkadot’s value dropped considerably as reservations regarding its ecosystem persisted ahead of the JAM chain update. On Monday morning, the DOT token experienced a dramatic decrease to $6.42 at 6:48 a.m. GMT, representing a plunge of over 45% from its high this year. This occurred simultaneously with a “death cross” on its chart, indicating possible additional declines as the 50-day moving average falls below the 200-day moving average. 

Despite the imminent release of the JAM upgrade in the next 20 to 60 months, many analysts fear a further decline in DOT’s price. This is due to the easy-to-deploy networks like Solana and BNB being a huge market competition for Polkadot. Furthermore, as all famous chains have memecoins active, Polkadot has yet to have one of its own. This has further pushed users to prefer Polkadot less than BNB, Solana, and Ethereum chains. 

JAM, which aims to overhaul the current system, demonstrates great promise as a future replacement for the relay chain. The framework draws its name from Core JAM, representing Collect, Refine, Join, and Accumulate functions. This designation symbolizes the underlying process JAM would employ, as first proposed by researcher and Ethereum co-founder Gavin Wood. However, only the Joining and Accumulating stages would transpire on the chain, while Information Gathering and Refinement occur externally. Dissimilar to step-by-step modifications, JAM will debut as a single, vast renovation. 

Numerous elements influenced this strategy: A consolidated upgrade facilitates meticulous administration of post-change actions, which fragmented amendments struggle to oversee adequately. It also helps stabilize the constant influx of small fixes and significant disruptions that tend to emerge throughout prolonged periods of development. 

Over the years, Polkadot has attracted developers who aim to attract customers quickly through the auction pipeline. Some of those are Acala, Astar, Bittensor, Centrifuge, and Clover Finance. Even still, these networks have lagged behind the popularity of Ethereum, Solana, and the BNB Chain. 

The Gray Paper forecasts that the Joint Accumulating Machine (JAM) upgrade will introduce relatively deterministic changes to the Relay Chain, which offers a globally single permissionless object space and secure sideband computation parallelized over a scalable node network. Soon after its release, the network will make the JAM chain available for developers to develop.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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