SOL, ADA, DOT: Which Super Altcoin Will Do Well This Christmas Season?
2021 is particularly good for the altcoin market, starting with the development of the DeFi token into a smart contract platform, the Metaverse token and the Layer 2 protocol.
Super altcoins or large-cap altcoins such as SOL, ADA and DOT recorded a high annual ROI this year and at some point rose independently of each other. It attracts social attention as well as encouraging private investors. This (at least for some coins) quite productive year is a little over.
The above altcoins appear to have turned bearish. DOT, ADA and SOL corrected sharply after BTC fell below $ 50,000. So, could this be a year-end buy dip opportunity when those altcoins test lower support?
Will these altcoins offer a good return even during the upcoming holiday season?
Actual position
At press time, global crypto market cap is $ 2.29 trillion, up 1% in 24 hours. On December 14th, Bitcoin fell to $ 45,600 and SOL lost 22.44% on the weekly chart. Meanwhile, DOT is down 10% and ADA is down 14.41% over the same period.
A downtrend began after ADA hit an ATH at $ 3.01 in early September. Additionally, it is testing the $ 1.2 long-term support. On the other hand, SOL rises for most of the year. Specifically, the price has increased from $ 1.6 on Jan 1st to $ 163.5 at the time of writing.
However, SOL is also testing the lower support of $ 151. Amid the parachain auction hype, the DOT was up 390% from July to November, generating a new ATH of $ 55. But DOT is also on a downtrend, testing the $ 25.9 support on the downside.
Source: TradingView
A test of lesser support could help the price of these altcoins rebound, especially as the Christmas and New Years holidays approach. So is this a good opportunity to buy the dip?
Future course development
According to the November cryptocurrency comparison report, ETH is the best-performing group’s asset, returning 7.9% over the month. Followed by SOL 2.8%. In contrast, the ROI of ADA was -39.19% and DOT -43.96% last month.
It is noteworthy that the volatility has increased for all three altcoins. SOL and DOT have annualized standard deviations of 1.04 and 1.08, respectively, from the daily returns for the same period. While the ADA volatility has been 0.98 and higher since October, the ADA Sharpe Ratio recorded -4.4 and more from the all-time low of -5.7
The source: Messari
DOT and SOL also have low Sharpe ratios of -5.79 and -4.5 at the time of writing. However, short-term external catalysts like the Parachain launch event on Polkadot could support a price breakout if the altcoin reverses the lower critical support.
Over 76% of the tokens are used for SOL, which reduces the circulating supply on the exchanges and further drives the bullish narrative. Additionally, SOL leads the top cap projects in terms of development activities, outperforming Polkadot, Cardano’s daily GitHub submission, in the last month.
The source: mood
Therefore, all three altcoins are at important price levels at the time of writing. Price movements above or below these levels can point their way into the future. The prospects for DOT and SOL look better in terms of prices than for ADA. While they can trade well during the year-end festivities, the element of risk cannot be ignored due to the higher Sharpe ratio.
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SOL, ADA, DOT: Which Super Altcoin Will Do Well This Christmas Season?
2021 is particularly good for the altcoin market, starting with the development of the DeFi token into a smart contract platform, the Metaverse token and the Layer 2 protocol.
Super altcoins or large-cap altcoins such as SOL, ADA and DOT recorded a high annual ROI this year and at some point rose independently of each other. It attracts social attention as well as encouraging private investors. This (at least for some coins) quite productive year is a little over.
The above altcoins appear to have turned bearish. DOT, ADA and SOL corrected sharply after BTC fell below $ 50,000. So, could this be a year-end buy dip opportunity when those altcoins test lower support?
Will these altcoins offer a good return even during the upcoming holiday season?
Actual position
At press time, global crypto market cap is $ 2.29 trillion, up 1% in 24 hours. On December 14th, Bitcoin fell to $ 45,600 and SOL lost 22.44% on the weekly chart. Meanwhile, DOT is down 10% and ADA is down 14.41% over the same period.
A downtrend began after ADA hit an ATH at $ 3.01 in early September. Additionally, it is testing the $ 1.2 long-term support. On the other hand, SOL rises for most of the year. Specifically, the price has increased from $ 1.6 on Jan 1st to $ 163.5 at the time of writing.
However, SOL is also testing the lower support of $ 151. Amid the parachain auction hype, the DOT was up 390% from July to November, generating a new ATH of $ 55. But DOT is also on a downtrend, testing the $ 25.9 support on the downside.
Source: TradingView
A test of lesser support could help the price of these altcoins rebound, especially as the Christmas and New Years holidays approach. So is this a good opportunity to buy the dip?
Future course development
According to the November cryptocurrency comparison report, ETH is the best-performing group’s asset, returning 7.9% over the month. Followed by SOL 2.8%. In contrast, the ROI of ADA was -39.19% and DOT -43.96% last month.
It is noteworthy that the volatility has increased for all three altcoins. SOL and DOT have annualized standard deviations of 1.04 and 1.08, respectively, from the daily returns for the same period. While the ADA volatility has been 0.98 and higher since October, the ADA Sharpe Ratio recorded -4.4 and more from the all-time low of -5.7
The source: Messari
DOT and SOL also have low Sharpe ratios of -5.79 and -4.5 at the time of writing. However, short-term external catalysts like the Parachain launch event on Polkadot could support a price breakout if the altcoin reverses the lower critical support.
Over 76% of the tokens are used for SOL, which reduces the circulating supply on the exchanges and further drives the bullish narrative. Additionally, SOL leads the top cap projects in terms of development activities, outperforming Polkadot, Cardano’s daily GitHub submission, in the last month.
The source: mood
Therefore, all three altcoins are at important price levels at the time of writing. Price movements above or below these levels can point their way into the future. The prospects for DOT and SOL look better in terms of prices than for ADA. While they can trade well during the year-end festivities, the element of risk cannot be ignored due to the higher Sharpe ratio.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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