Solana, Cardano, and Polkadot prepare for second leg up after the sudden market crash
- Over $7 million flowed in Solana, Cardano and Polkadot products from institutional investors.
- Cardano added 100,000 new staking addresses over the past two months.
- Total volume locked in Polkadot crowdloans has crossed $1 billion alongside the first Parachain auction.
- $700 million in crypto long and short positions was liquidated in the past 24 hours, as Bitcoin price dropped by $6000.
Bitcoin price plunged, triggering cascading liquidations earlier today. Analysts expect altcoin season as layer one protocols, and Ethereum-killers Cardano, Solana and Polkadot gear up for a comeback.
Ethereum-killers prepare for second leg up
Alongside the cascading liquidation of Bitcoin's long and short positions, analysts expect altcoins to recover from the price drop. Institutional investors have injected over $7 million in Solana, Cardano and Polkadot products.
Analysts have a bullish outlook on layer one solutions with the rising capital inflow. Cardano's ecosystem has witnessed a spike in the number of staking addresses. Over 100,000 addresses were added over the past two months, reducing the circulating supply and creating a shortage. Historically, a supply shortage drives the asset's price higher; therefore, analysts are bullish on ADA.
Analysts expect the ADA price to make a comeback above $2.5 and continue an upward climb.
FXStreet analysts have evaluated the ADA price trend and predicted that Cardano has a massive pump to look forward to after a 9-week losing streak.
Polkadot, another Ethereum-killer, prepares for a comeback alongside the first parachain auction. Crowdloans on the network have exceeded $1 billion in total volume locked.
Pseudonymous cryptocurrency analyst @rektcapital analyzed ADA/USDT price trend and noted that the altcoin has successfully retested its all-time high as support.
$DOT / USDT - #DOT #DOTUSDT #Polkadot
— Rekt Capital (@rektcapital) November 11, 2021
Polkadot has successfully retested its old All Time High as support
Positioning itself well for trend continuation
Discussed in Friday's Altcoin Newsletter
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Historically, Bitcoin's dominance wanes as altcoins start rallying. Solana, Cardano and Polkadot's recovery could have a similar impact on Bitcoin's price this cycle.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
