Cardano

Bitcoin

Polkadot

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<a href="https://u.today/cardano-heres-latest-update-on-midnight-innovation" rel="noopener noreferrer nofollow">Cardano</a> (ADA) and Polkadot (DOT) are grabbing attention, but not necessarily for the right reasons. The Glassnode cofounder's recent <a href="https://twitter.com/Negentropic_/status/1701905677940080899" rel="noopener noreferrer nofollow">analysis</a> suggests that these altcoins could be a risky play in the short term. The strategy? Short these alts as Bitcoin nears resistance and goes long when BTC is near support. If these coins spike, consider shorting post-spike. 
Over the past month, Cardano's price has been oscillating between $0.25 and $0.29, with no significant upward momentum. Polkadot has not fared much better; its price has ranged from $4.25 to $5.07. The lack of a strong upward trend makes these altcoins susceptible to market volatility, especially when Bitcoin is struggling. 
<img alt="Cardano" data-entity-type="file" data-entity-uuid="d596a3cd-bc71-4532-a926-427b157515b6" src="https://u.today/sites/default/files/inline-images/image_66.png">Source: <a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">TradingView</a> 
In the short term, both <a href="https://u.today/cardano-heads-into-depression-as-new-ada-price-prediction-from-top-analyst-shows" rel="noopener noreferrer nofollow">ADA</a> and DOT have shown a lack of bullish signals. ADA's price has been mostly stagnant, hovering around the $0.25-$0.29 range. DOT's price has been equally uninspiring, fluctuating between $4.25 and $5.07. The midterm outlook is not rosy either. With Bitcoin's resistance levels acting as a market barrier, these altcoins are not the best candidates for a bullish breakout. 
The Glassnode cofounder advises looking for alts that have outperformed and shorting them as Bitcoin nears resistance. In the case of ADA and <a href="https://u.today/polkadot-dot-up-5-as-community-votes-on-crucial-upgrades" rel="noopener noreferrer nofollow">DOT</a>, the lack of strong performance makes them prime candidates for this strategy. If these coins do experience a sudden spike, the recommendation is to short them post-spike, capitalizing on the likely retracement. 
One of the key factors to consider is liquidity. A lack of it can exacerbate price swings, making these altcoins even riskier. With the <a href="https://u.today/unexpected-ethereum-eth-bounce-whats-really-behind-it" rel="noopener noreferrer nofollow">market</a> still heavily shorted, the absence of sufficient liquidity could lead to sharp declines. 
While ADA and DOT have their merits, current market conditions make them a high-risk play. The strategy of shorting these alts near Bitcoin's resistance levels and going long near support levels could be a way to navigate through this uncertainty. But tread carefully; the market is as unpredictable as ever.

Cardano (ADA), Polkadot (DOT) Might Be High-Risk Altcoin Play Now: Analyst

U_Today

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