1 Cryptocurrency to Buy, 1 Cryptocurrency to Sell: Polkadot and Berachain
The cryptocurrency market is witnessing a strong recovery wave, as Bitcoin has climbed to a new record high, pushing the total market capitalization above the $3.5 trillion mark. Against this backdrop, investors are starting to expect the next “altcoin season” – where alternative coins (altcoins) can make a strong breakthrough.
Among thousands of altcoins, choosing the right asset to invest in or dump is a decisive factor in profits. This article analyzes two prominent names, Polkadot (DOT) and Berachain (BERA) – thereby clarifying which coins to buy and which coins to sell or stay away from.
Cryptocurrency to Buy: Polkadot (DOT)
Polkadot continues to be one of the most promising coins in the current bull cycle, thanks to its solid fundamentals and compelling technicals.
Attractive Staking Yield
Polkadot currently offers a staking yield of up to 11.5%, outperforming many other Layer-1 blockchains such as Ethereum, Solana or TRON. This is a factor that helps attract long-term money flows, while also contributing to reducing the circulating supply in the market.
Long-term accumulation - a sign of readiness to breakout
DOT has maintained an accumulation pattern that has lasted for more than three years, fluctuating between the price range of $3.76 and $11.33. This price structure is similar to the pattern that Monero (XMR) went through before making a strong surge.
Technical analysts believe that DOT is in the accumulation phase according to the Wyckoff Theory, and if this pattern completes, the price could enter a “markup” phase – a period where demand clearly exceeds supply, leading to a sustained upward momentum.
In addition, DOT has formed a triple bottom pattern at $3.76 – a strong technical signal that shows strong support. If the resistance level of $11.33 is broken, DOT could advance to the 50% Fibonacci level at $30, representing a gain of more than 500% from the current price.
Cryptocurrency to Sell: Berachain (BERA)
Berachain is a prime example of an asset that investors should be cautious or avoid at the moment, due to both weak fundamentals and negative technical signals.
Total Value Locked (TVL) Plunges
Over the past 30 days, the total value locked on Berachain has dropped by 43% to just $3 billion. This is a clear sign that money is being withdrawn from the ecosystem.
Not only that, the stablecoin capitalization in the network has also dropped dramatically - from more than $1.6 billion at the beginning of the year to just $300 million. The lack of stablecoins is a warning of a decline in liquidity and DeFi activity on the platform.
Pressure from token unlocking
From February next year, Berachain will begin a monthly token unlocking cycle that will last until 2028. Continuously pumping more supply into the market without a corresponding increase in demand will put great pressure on the token price, easily leading to a dumping effect.
Negative Technical Signals
On the 8-hour chart, BERA has broken below its 50-period moving average, forming an inverted rising wedge pattern – a popular bearish pattern. If this trend continues, BERA could slide back to its historical low of $2.70.
Summary
Asset Portfolio Key Reasons
Buy Polkadot (DOT) Long-term accumulation, high staking, Wyckoff breakout potential
Sell Berachain (BERA) TVL plummets, long-term token unlock, negative technical signals
In the period when the crypto market is recovering and entering a new bull cycle, choosing the right altcoin can generate outstanding returns. Polkadot with its solid foundation and positive technical structure is a worthy choice. On the contrary, Berachain is showing many risks in terms of cash flow, liquidity and technical, an asset that should be limited in the investment portfolio.
