Altcoins
Why did it fail to attract attention despite the major update?
After the iconic bull run of 2021, cryptocurrency markets have gained tremendous attention. Among them were altcoins such as Chainlink, Uniswap, Polkadot, etc. which have soared by huge margins. While LINK and UNI managed to make some gains, the DOT price continues to remain consolidated below double digits. Furthermore, the recent JAM update on Polkadot also did not have a significant impact on the DOT price, which suggests that the project and the cryptocurrency are both heavily undervalued.
What is JAM update on Polkadot?
Recently, a few days ago, the network celebrated its 4th anniversary and to top it off, the community approved the JAM update. JAM, a decentralized hybrid system, combines the features of Ethereum and Polkadot to offer secure and scalable smart contract functionality. It mainly replaces the relay chain with a more efficient and modular chain with a minimal design.
On the contrary, the DOT price maintains its calm, not being influenced by market fundamentals and dynamics.
DOT price is stuck in the same consolidation range followed by Chainlink. The LINK price has broken out of the range, while the DOT price continues to trade within the same range. However, after a failed attempt to break out of the levels, the price consolidated tightly along the upper bands of the Gaussian channel, which turned bullish. Therefore, this kept the bullish hopes alive, which could be confirmed after breaking above $10 and reaching the important resistance at $11.
Meanwhile, OBV has maintained a thin horizontal line indicating an above-average level for over 12-15 months. Therefore, with this, the possibility of bearish interference has been drastically reduced. However, until fresh liquidity inflows, making a bullish breakout could be a tedious job for the Polkadot (DOT) price rally.