Almost all coins, including Bitcoin and Ethereum, are falling today as the market trades in the red. However, some coins that saw significant price increases in the previous two months are now seeing significant price drops.
But which alternates?
Between July and August, three altcoins, Solana, Polkadot, and Algorand, rallied successfully. Polkadot soared from $12.34 to $34.45 in just over a year, a 214.33 percent increase. Algorand experienced similar gains, surpassing $2 and registering a 230.26 percent increase.
Solana holders saw the biggest gains, with the altcoin increasing by 713.94 percent. The NFT hype pushed it up from $26.68 to $191.07, setting a new high.
During this time period, Solana and Algorand both set new all-time highs. However, each of these coins was now experiencing significant price drops.
As of press time, ALGO had lost 15.26%, DOT had lost 14.37%, and SOL had lost 16.88% of its value in the previous 24 hours.
One of the main reasons for this drop was their exhausted momentum, as even after the September 7 drop, DOT and ALGO saw another price rise before finally slowing down.
As a result, investors may be selling their positions in both spot and derivatives markets. At the time of this report, sell volumes had increased and liquidations had reached millions for all three altcoins. SOL made the most money, but it also lost the most money, with liquidations totaling $25 million.
Is Bitcoin capable of rescuing them?
Given that Bitcoin’s price moves in lockstep with the market, it’s clear that BTC needed to cut losses first. But, more importantly, the correlation of these assets to Bitcoin will determine how much they are influenced by BTC. Algorand is currently at the bottom with a score of 0.57, followed by Solana with a score of 0.7, and Polkadot with a score of 1. (0.88)
Surprisingly, investors are most optimistic about Algorand of all three, anticipating a quick recovery.
Other coins will follow Bitcoin and Ethereum’s lead once they change their movement. That’s when you can expect to see some improvement.