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The cryptocurrency market experienced a notable rebound this week, with Bitcoin reaching new highs and the total market capitalization of all digital assets surpassing $3.5 trillion. Investors are optimistic that a potential crypto bull run could drive Bitcoin’s price to $150,000, while many altcoins are poised for growth.

This article compares Polkadot and Berachain, two prominent altcoins, to help traders identify the best investment opportunities and understand which asset may be better to sell or avoid.

Crypto to Buy: Polkadot (DOT)

Polkadot is emerging as one of the most promising assets to consider during this bull run. Its standout feature is a high staking yield of 11.5%, which surpasses the yields offered by many layer-2 cryptocurrencies, including Ethereum, TRON, and Solana.

Another reason Polkadot is attracting attention is its prolonged consolidation phase. Over the past three years, DOT has traded within a range of $3.76 to $11.33, displaying a pattern similar to Monero’s accumulation over two years before its eventual price surge.

Polkadot appears to be in the accumulation phase of the Wyckoff Theory, a stage often followed by a markup phase, where demand exceeds supply and prices rise significantly.

Additionally, DOT has established a triple bottom at the $3.76 level, a price point it has consistently held since 2023. Analysts predict a potential rebound to $11.32, which represents a 132% gain from its current price. If the asset surpasses this resistance level, it could climb further to the 50% Fibonacci retracement level near $30, marking a staggering 500% increase from today’s valuation.

Key Reasons to Consider Polkadot:

  • High staking yield of 11.5%, offering passive income potential.
  • Three-year price consolidation suggests strong support levels.
  • Triple bottom formation at $3.76 indicates a bullish outlook.
  • Potential upside to significant resistance levels, including $11.32 and $30.

Crypto to Sell: Berachain (BERA)

While Berachain has gained some attention in the crypto space, its recent performance raises concerns for investors. Both its fundamentals and technical indicators suggest potential risks.

From a fundamental perspective, Berachain’s network health appears to be deteriorating. The Total Value Locked (TVL) on the platform has declined by 43% in the last 30 days, dropping to $3 billion. Furthermore, the market capitalization of stablecoins within the Berachain ecosystem has fallen dramatically from $1.6 billion earlier this year to just $300 million, indicating slowing growth.

Adding to these concerns, Berachain is set to initiate monthly token unlocks starting in February next year, continuing until March 2028. Token unlocks increase supply and can exert downward pressure on prices, particularly when demand fails to keep pace.

On the technical front, BERA has slipped below the 50-period moving average on the eight-hour chart. The asset has also formed a rising wedge pattern, which is often a bearish indicator. Analysts predict a potential drop to its all-time low of $2.70.

Reasons to Sell or Avoid Berachain:

  • Declining Total Value Locked (TVL) signals weakening network activity.
  • Sharp reduction in stablecoin market capitalization within the ecosystem.
  • Upcoming token unlocks may increase supply and negatively impact prices.
  • Bearish technical patterns suggest further downside potential.

Investors should carefully evaluate Berachain’s fundamentals and technicals before considering it as part of their portfolio.

Overall, while Polkadot shows strong growth potential backed by solid fundamentals and technical patterns, Berachain presents several red flags that suggest it may struggle in the current market environment. Traders should remain vigilant and conduct thorough research to make informed decisions in the fast-evolving cryptocurrency space.

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