Dock set to upgrade mainnet to proof-of-stake this week; prices explode

Dock DOCK
Image by Free-Photos from Pixabay
  • Dock annouced an upcoming updrage of the mainnet to proof-of-stake(PoS), instead of using proof-of-authority(PoA) algorithm.
  • Technical analysis on the DOCK daily chart with possible support/resistance levels ahead.

YEREVAN (CoinChapter.com) — Dock, a blockchain for creating verifiable credentials and building decentralized apps, has been rocketing since June 24. It has gained 37.6 percent to almost hit $1. On the said date, Dock announced that the blockchain would shift to a proof-of-stake (PoS) algorithm on July 7.

Dock’s mainnet upgrade

According to the announcement, the latest network “transition will further decentralize the Dock blockchain by basing validator selection on the amount of tokens staked by validators and token holders”.

In doing so, Dock’s PoS mainnet will also allow the holders of its its native token DOCK to vote on changes on the mainnet. Currently, the blockchain has a ‘governance council’, or a set of validators within a proof-of-authority algorithm.

Dock warned its traders that the transition will start at 10 a.m. GMT and will take about 3 hours. During this time transactions will not be possible. After the PoS mainnet launch is successfully complete, DOCK holders will be able to participate in the network decision-making process.

Also read: Bitcoin week ahead Ep10: Expect a calmer week after NFP-backed rally

Technicals behind the rally

DOCK has been trading in a symmetrical triangle formation since early May.

In detail, Symmterical Triangles consist of two converging trendlines that trap a price action. They are generally continuation patterns, i.e., they tend to send prices in the direction of their previous trends upon them breaking out of the range. Meanwhile, the breakout move could take prices as high as/as low as the maximum distance of the Triangle.

That said, if DOCK logs a bullish move, the resulting breakout move’s profit target could be around $0.284, as measured from the current $0.096-level.

Dock traded in a symmetrical triangle. Source: DOCKUSDT on TradingView.com
Dock traded in a symmetrical triangle. Source: DOCKUSDT on TradingView.com

The Fib Retracement indicator, drawn from the swing high of $0.182 to the lowest point of $0.0376 of May 24, also pinpoints potential entry/exit levels ahead for both outcomes.

The 38.2% retracement level is the closest to the current value. It could provide assistance for the token if it fails to break out and retests the upper trendline of the triangle. Should the formation continue, the 23.6% level could also provide support in case of DOCK goes through a setback.

If DOCK does break the resistance and makes a bullish break, the 50% and 61.8% retracement levels could prove significant.

Also read: Cardano flashes conflicting technicals on the charts; what’s next for ADA?

The app-building blockchain rallied almost 38 percent since June 24, when it announced the upcoming shift from proof-of authority to a proof-of-stake algorithm. The transition promises a more inclusive network, with permission for DOCK holders to participate in the network decisions. The token traded in a triangle formation without a pronounced continuation bias, however with a strong incentive for a breakout.

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Dock, Dock set to upgrade mainnet to proof-of-stake this week; prices explode

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