Polkadot Worth Down 3% – Time To Purchase DOT? – EconomyWatch.com

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Polkadot is a top ten crypto project. She achieved this feat not only because of her market capitalization. The project has also made significant strides because of its unique role in enabling a decentralized web.

Polkadot was founded in 2016 by Dr. Gavin Wood and has set itself the goal of enabling blockchain platforms to communicate with one another.

In the past 24 hours, the protocol’s DOT governance token has decreased in value, but it shouldn’t affect your decision if you want to buy DOT.

This article looks at the fabled “Ethereum Killer” value proposition and whether this is a good time to buy DOT for the long term.

Polkadot: Heterogeneously divided multi-chain solution

Polkadot was created to herald the decentralized web and is the brainchild of the famous Solidity language developer Dr. Gavin Wood.

According to Wood, Polkadot is set to deliver on promises that the Ethereum network was unable to turn into reality.

With an optimized version of the popular proof-of-stake protocol called nominated proof-of-stake (NPoS), Polkadot is a heterogeneously shared multi-chain crypto protocol that enables smart contracts and new blockchains and tokens to be built.

In addition, these blockchains hosted on their relay chain will be interoperable, meaning they will exchange information and values.

This shard design approach makes the blockchain network expandable and future-proof without a network fork.
Polkadot is an open source project by the Web3 Foundation and Parity Technologies.

It is based on substrates that enable the trustless distribution of information.

The DOT token serves as a governance token for the network. DOT holders have the privilege of voting on proposals on the network. It is also used for network charges in the Polkadot ecosystem.

Blockchain platforms wishing to join the Polkadot protocol can choose between starting on their parachain structure or their parathreaded architecture.

Parachains are independent chains whose tokens operate in the Polkadot ecosystem. A parachain place is secured in an auction. Parathreads are also similar to Parachains, but they work on a “pay-as-you-go” model, which makes them a short-term offer.

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DOT: threading the bearish tide

The bears have overrun the crypto market in the past few months. With cryptocurrencies subject to tighter regulatory scrutiny, market confidence has been at an all-time low. Large-cap cryptocurrencies like Bitcoin have been battling the $ 35,000 mark for months.

Along with other crypto protocols, DOT’s price campaign has been in the red for some time. As of press time, the multi-chain token is trading as low as $ 12.624, down 3.60% over the past 24 hours. This could be a good time to buy DOT for a bargain.

The reason lies in the historical development of the DOT share price in the first five months of the year. Trading $ 8.8 on January 1st, DOT rose 5,000% to $ 48.36 on April 17th.

It retested this price action and rose to an all-time high (ATH) of $ 48.68 on May 15.

However, that was before the May crypto market crash, which saw the DOT plunge more than 50% to $ 15.49 a month later. While it continues to struggle, it has so far failed to break above the $ 17.04 resistance level.

DOT technical and fundamental analysis

The crypto market has been in a tight spot for the past two months, and DOT has also been depreciating day by day. The digital asset is trading below the 20-day moving average (MA) support of $ 15.257, indicating a bearish trend. Its relative strength index (RSI) is dangerously close to the oversold level of 32.69.

However, if you believe in the numerous use cases of the Polkadot Project, a near-negative RSI shouldn’t stop you from buying DOT.

Market analysts assume that the token will still recover. Wallet Investor has set its 1-year forecast to $ 56.066 while its 5-year forecast is at $ 215.853.

Polkadot is preparing its blockchain for its parachain auctions. The Parachain auction currently running on its sister network Kusama will allow blockchain platforms to launch in the Polkadot ecosystem.

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About Jimmy Aki PRO INVESTOR

Jimmy is a UK-based economist with outstanding hands-on and face-to-face experience in macroeconomic financial analysis, forecasting and planning. He has refined his skills through a cross-continental activity as a financial analyst, which gives him intercultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him to peek under the global hood to see how the world works.

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