In a time when there are so many cryptocurrencies to choose from, it is easy for projects that are not ranked in the top 5 to be overlooked. It is understandable that investors would choose to invest in the likes of Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Cardano (ADA), but it also might be worth looking at other viable alternatives. Polkadot (DOT) is one such altcoin, and it is currently the 9th highest ranked cryptocurrency by market cap with a current price of just about $18.
Regardless of the price fluctuations, many actively consider Polkadot to be one of the best choices currently available as far as long-term investments go. This was proved when the recent price gains, along with the high-volume candlesticks, had underlined a growing enthusiasm surrounding the altcoin.
Can Polkadot sustain its momentum?
Kraken had issued a report recently, according to which Polkadot was revealed to be the 4th highest performing mid-asset within the last seven days. The trade volumes for the altcoin on the popular exchange had increased by over 6%, which is once again a strong indication of an increase in interest regarding spot trading for Polkadot.
In the past, there had been a ‘V-Shaped’ recovery for the altcoin’s circulating market capitalization. Although the price has dipped slightly since the beginning of this month, the circulating market cap has managed to steadily increase, a strong indication for Polkadot’s continued success.
With this in mind, experts believe that the $20 mark could be a critical juncture for Polkadot due to this level previously acting as long-term support back in May as well as June. After the mark is reached, it is very likely that the altcoin shall rally.
It must be acknowledged that a majority of altcoin rallies tend to be largely influenced by various external factors like social sentiment, and Polkadot is no exception. There had been a noteworthy uptick as far as social volumes are concerned, the biggest in a month, in fact, on the 1st of August. Additionally, DOT’s overall weighted sentiment had also managed to experience a spike.
Moreover, there has been a decent return on investments (ROIs) regarding Polkadot’s price, with the monthly ROI being observed to be just beneath 17.5% in spite of losses. Certain analysts would claim that higher ROIs would normally be associated with those assets that are deemed to be higher-risk, but Polkadot had managed to nevertheless perform well.