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- DOT is down more than 3% in the last 24 hours alone.
- Liquidation rates were high and market indicators looked bearish.
Polkadot (DOT) continues to top the list of key indicators of the degree of decentralization. This can generally be perceived as a positive update, as the core value of blockchain technology is decentralization.
But will this be enough for the token to register a profit on the price chat?
Polkadot is becoming more and more decentralized!
Polkadot Insider recently posted a tweet highlighting the Nakamoto coefficient of blockchain.
First of all, this metric indicates the minimum amount of work required to bring down a particular blockchain. Each time the indicator increases, this clearly indicates that the blockchain is becoming more difficult to break and more decentralized.
Blockchain ranking according to Nakamoto coefficient score within 24 hours
🎉In a proof-of-stake network, the Nakamoto coefficient quantifies the minimum entity required to control 1/3 of the stake.
🚀The higher the Nakamoto coefficient of a network, the more decentralized it is… https://t.co/mKW8zAukaM pic.twitter.com/rTzxmJQ121
— Polkadot Insider (@PolkadotInsider) December 15, 2023
Returning to the tweet, Polkadot Insider stated that DOT’s Nakamoto coefficient is 92. This is commendable since the DOT’s indicator was only 70 in April 2023.
Besides DOT, other notable blockchains that made the list include: Mina Protocol (MINA), TorChain (RUNE), Avalanche (AVAX)and Solana (SUN). However, diversification alone may not be enough for DOT to increase profitability for investors.
DOT’s bears buckle up
Like several cryptocurrencies, DOT has also recently witnessed a price correction. To be precise, the token has fallen by over 3% in the last 23 hours alone.
Depending on the CoinMarketCapAt the time of this writing, Polkadot has a market capitalization of over $8.9 billion and is trading at $7.13.
To determine what was wrong, AMBCrypto looked at the liquidation level of the token.
After checking, dot It has failed to break above key resistance levels recently. When the token price reached $7.77, the liquidation volume increased significantly, causing a price correction.
It will be interesting to see when the market will revive and how quickly DOT can surpass that level.
Source: Hiblock Capital
Therefore, AMBCrypto checked DOT’s daily chart to understand what to expect from Polkadot in the near term. Polkadot’s MACD showed a possible bearish crossover soon.
read Polkadot (DOT) price prediction 2023-24
The Funds Flow Index (MFI) also recorded a slight decline in overbought territory, indicating high selling pressure on the token.
Another indicator pointed out the possibility of further price declines. dotThe price of reaches the upper limit of the Bollinger Band, which usually causes a price correction.
Source: TradingView