Polkadot’s Join-Accumulate Machine (JAM) Upgrade

Discussions have been sparked by Polkadot’s transition toward its Join-Accumulate Machine (JAM) upgrade on X.

Polkadot Price Prediction

Recent analyses highlight that Polkadot (DOT) has successfully broken free from a falling wedge pattern, signaling an end to its long-term price decline. The recent breakout suggests that DOT might be moving into a bull market but faces resistance at $5.50, $7.60, and $9.25.

As of the latest information, the price is at $4.75 after breaking the 50-day simple moving average (SMA), which had previously acted as dynamic resistance during the falling wedge formation. Sustained price movements above this level would indicate a bullish continuation as the asset aims for higher price targets.

The market had been characterized by a falling wedge pattern, showing decreasing highs and lows for several months. The price surpassing descending resistance levels points to a decrease in selling pressure, potentially leading to market accumulation.

A liquidity gap identified through volume analysis at $5.50 suggests potential rapid movements towards $7.60 and ultimately $9.25. However, if DOT cannot maintain support at $4.69, it may revisit the $4.18 support or even decline to the $3.94 support region. A failure to maintain control above $3.94 could negate bullish sentiments and initiate a new downward price trend.

The Relative Strength Index shows balanced market momentum at neutral points, implying possible continued upward movement. Short-term targets for DOT are set at $7.60, with a primary objective at $9.25. The current rejection level may lead to either a consolidation phase or a reassessment of prior support areas to verify the breakout’s sustainability.

Polkadot Upgrade and Enhanced TPS

The impending upgrade aims to boost Polkadot’s operational capabilities, with these systems already verified to handle 143,000 transactions per second (TPS) on the blockchain. JAM employs a parallel processing design that allows it to compute over 1 million TPS, surpassing modular chains due to its genuine parallel operation of states rather than isolated computation steps.

Upcoming improvements may achieve 500ms block times through asynchronous backing, though some experts believe that this timing metric may lose significance post-upgrade. Additionally, Polkadot’s economic parameters have been updated to utilize the Nominated Proof-of-Stake (NPoS) system for secure off-chain computations, establishing a pathway for annual inflation reduction to 7% and below.

The decentralization efforts of Polkadot elevate its Nakamoto coefficient to over 300. However, numerical evidence regarding decentralization metrics and TPS projections remains unverified by peer-reviewed studies and blockchain analytics platforms, labeling the information as speculative.

The price of DOT could potentially increase if the upgrade enhances adoption rates. On the contrary, if these upgrade claims remain unverified, investor confidence may wane, causing growth to slow and prices to remain below $5.