Solana, Cardano y Polka dots They are large-cap altcoins and 2021 has been a great year for them thanks to the social attention and push from retail investors. But what is the best option for this Christmas? Wondering Varuni Trivedi en Ambcrypto.
However, due to the fall of Bitcoin, these Atlcoins have suffered corrections in their value. Could this be an opportunity to buy on the falls?
How much have they corrected?
The global crypto market capitalization stood at $ 2.12 trillion. While Bitcoin corrected, Solana posted weekly losses of 22,44%, polka dot un 10% and Cardano a 14,41%.
Cardano, after hitting an ATH of $ 3.01 in early September, started a downtrend.
Solana, for her part, has recovered for most of the year. In particular, it increased from $ 1.6 on January 1 to $ 154.80.
Polkadot, amid the hype of the parachain auctions, rebounded in a 390% from July to November, generating a new ATH of $ 55. But it has also been in a downtrend and tested the lower support at $ 25.9.
These tests at lower supports could be an opportunity for a bullish rebound, especially around this time of year-end.
The future trajectory of prices
According to the report Crypto Compare November, Ethereum was the best performing asset of the largest cryptocurrencies, with a 7.9% yield throughout the month. Solana followed with a performance of 2,8%. On the other hand, Cardano presented -39.19% and DOT -43.96% ROI vs USD in the last month.
In particular, the volatility of the three altcoins had rebounded. Solana and Polakdot observed a 1.04 and 1.08 annualized standard deviation of daily returns for a window of time. While Cardano’s volatility was 0.98, had experienced a more pronounced rebound since October. The Sharpe index I note -4.4 and made its way from the all-time low of -5.7
Polkadot and Solana also had low Sharpe ratios, pointing out -5.79 and -4.5. Nonetheless, short-term external catalysts, such as the parachain launch event for Polkadot, may help the price breakout if the altcoin changes the crucial bottom support.
For Solana, with its more than 76% of tokens staked, it reduces the circulating supply on exchanges further boosting the coin narrative. Additionally, in terms of development activity, Solana has led the way among large-cap crypto projects, beating Polkadot and Cardano’s daily github submission rates for the past month.
All three altcoins were at crucial price levels, a move above or below those levels could steer their way forward. Polkadot and Solana have better prospects compared to Cardano, on the price front. While they may present investment possibilities heading into Christmas, the element of risk cannot be ignored due to higher Sharpe ratings.
Cardano is trading at $ 1.2460, Solana is trading at $ 159 and Polkadot is trading at $ 26.
Learn how to invest in bitcoin and other crypto assets with the course that takes Investment Strategies
We would love to give thanks to the author of this article for this awesome material
We wish to give thanks to the author of this article for this awesome material
Solana, Cardano Or Polkadot? What Is The Best For This Christmas?