Bitcoin has desperately been trying to climb above the $48k mark since 14 August, but has been unable to do so. In fact, the king coin was trading at $47.2k at the time of writing. Most of the market’s alts have also followed Bitcoin’s scepticism and managed to fetch only single-digit returns to their HODLers over the past day.
However, a couple of alts from the top 35 list managed to fare better than the broader market. Terra’s (LUNA) value, for instance, has appreciated by 31.1% in the past 24-hours and Klaytn’s value by over 10%. Cardano, on the other hand, has been the talk of the crypto town ever since its value jumped above $2. However, the same has only pumped by 3.4% over the past day.
Are these alts still a compelling buy?
Klaytn’s volume was at its local peak (173 million) on 14 August. The same has, however, massively shrunken over the last couple of days. As per Santiment’s data, KLAY’s press time volume stood at 130.1 million. Cardano’s volume too, for that matter, witnessed a dunk from 7.96 billion to 5.3 billion in the same time window. LUNA’s volume, interestingly, weaved a different tale and witnessed a spike from 283 million to 1.04 billion.
Towards the end of July, the Sharpe Ratio of KLAY was hovering in the negative zone. However, the same witnessed a phenomenal bounced back and reflected a value of 7.74 at the time of writing. As a matter of fact, the Sharpe Ratio highlights the potential risk-adjusted returns of an asset. Thus, the higher the sharpe ratio, the better the returns fetched. This metric’s reading for LUNA and Cardano stood at 7.85 and 5.38 respectively.
So, which alt is a better pick?
The price chart of LUNA depicted an interesting trend. Its price had been attempting to break above the $18.07 resistance level for more than four days in a row, but was finally successful in doing so during the early hours of 16 August. Additionally, as can be seen from the chart attached, LUNA’s price has broken above the upper channel line of its ascending channel. Traders usually re-step into the market whenever the price breaks above the aforementioned trend line. Thus, LUNA’s price can be expected to rise further in the coming days.
KLAY broke above its $1.8 resistance recently and opened the door to $2.1 for itself. In fact, the alt was already trading at $1.9 at the time of writing. However, traders need to keep in mind the low volumes before taking a call.
Now, as far as Cardano is concerned, the current $2.1 level has acted like a strong resistance in the recent past. In fact, ADA was being tested at the very same region at press time too. Only if it manages to break above this hurdle, one can expect this alt’s price to re-conquer its May highs.
As far as traders are concerned, LUNA seems to be the most appealing choice at the moment followed by KLAY. However, long term investors can consider entering the ADA market at this stage.
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