7 Cryptos to Watch as the Market Recalls the Ghosts of 2018

Representing an exercise in frustration, the cryptocurrency sector has failed to capitalize on the positive implications of its recent rally, strongly implying that investors should prepare for volatility, if not outright take some risk out of the market. table. Reaching nearly a total market capitalization (ceiling) of $1.3 trillion, a sharp decline in cryptos saw the blockchain market drop sharply to around $1.2 trillion.

Of course, virtual currencies have earned a reputation for wild volatility, so such sectoral losses are nothing new. However, context is important. With cryptos as a whole not consistently exceeding the $1.3 trillion market cap line, they are at risk of meandering into a consolidation pattern. The problem is that we saw a similar sideways consolidation at the end of 2018 as the sector failed to convincingly break above the $200 billion level.

As you can see on the historical chart, the long consolidation eventually gave way to a sharp decline in market value. While hindsight shows us that cryptos have finally made a comeback, this lesson reminds us that anything and everything is possible in this field.

Therefore, set aside your assumptions about the trajectory of digital assets as we navigate these tumultuous cryptos together. Here are my top seven cryptos to watch right now:

Cryptos to watch: Bitcoin (BTC)

Source: Shutterstock

Putting crypto participants through an agonizing ride, Bitcoin (BTC-USD) made a surprise trip above the $30,000 level on June 5, followed by a move above $31,000 for most of the June 6 session. Unfortunately, the positive fallout from the rally was not forthcoming. In the afternoon, Bitcoin fell, bringing the price back below $30,000.

As I write this, BTC is trading at around $29,500, which is roughly the average price since May 11. On the one hand, it is encouraging that Bitcoin has firmly held the $29,000 level, which acts as strong support. But on the other hand, I am concerned about the ghosts of 2018. During the last months of that year, BTC was trading sideways around the $6,400 level.

Understandably, many investors thought a bullish momentum would kick in. Fake ! In December 2018, BTC dropped to around $3,200 before embarking on its remarkable rally.

Here is the point. While Bitcoin could eventually rally again, it cannot be ruled out that BTC will experience a sharp correction before that happens.

Ethereum (ETH)

A conceptual image of a virtual coin based on the Ethereum logo.

Source: Filippo Ronca Cavalcanti / Shutterstock.com

Another frustrating example of how incredibly cruel cryptos can be, during the January 5 session, Ethereum (ETH-USD) broke above the $1,800 level, followed by $1,900 the next day. Interestingly, however, ETH provided an early warning indicator for Bitcoin and other cryptos. You see, the overshoot of $1,900 happened during the morning hours. Quickly, ETH started to struggle and then fell in the afternoon.

At the time of writing, Ethereum is trading at around $1,750, which is a potentially worrying technical state. In late May, ETH briefly dipped below $1,730, which is just over a 1% deviation from current market conditions. If the coin retests the aforementioned low and the support line fails, it would likely result in a major selloff for ETH.

Frankly, the volatility of cryptos as a whole is why I focus on technical indicators. Admittedly, fundamentally, Ethereum is arguably commanding a substantial upside path. However, if you can load the boat at a much lower price, why wouldn’t you?

Cryptos to watch: Tether (USDT)

A conceptual token for the Tether (USDT) cryptocurrency.

Source: DIAMOND VISUALS / Shutterstock.com

As someone who has traded cryptos with far more frequency than stocks, I will be the first to sing the praises of stablecoins As Attached (USDT-USD). Pegged to a hard currency – usually the US dollar – stablecoins allow you to secure your profits, but in the realm of the blockchain. This way, you don’t have to constantly transfer funds from centralized institutions (i.e. your bank) to crypto exchanges.

However, this convenience and fast transaction speed comes at the cost of a loss of sleep. With the dramatic implosion of Classic Earth (LUNAUSD) – which was rebranded as such after the disaster – the stability of stablecoins and associated assets is far from guaranteed. Now, Tether is backed by paper reserves (supposedly) rather than an algorithm, making USDT theoretically safer.

But how much are investors as a whole going to trust the unaudited books of Tether and other stability-focused cryptos? For me, Terra was a massive wake-up call, forcing me to protect myself with a major move to fiat.

Gimbal (ADA)

A concept coin for Cardano (ADA).

Source: Shutterstock

A familiar face among alternative cryptos or altcoins, gimbal (ADA-USD) got the slot number six in terms of market capitalization, sitting at around $22 billion. Primarily known for pioneering the proof-of-stake protocol – a consensus mechanism that favors network engagement over raw computing power – Cardano enjoys solid street cred. However, it was also deemed insufficient in terms of technical strength.

As of this writing, ADA is trading at the 58 cent level. The main argument here is that the digital asset needs to start making significant progress to earn enough investor confidence. Despite the gasps and gasps, Cardano is still trading below its 50-day moving average, a common barometer of shorter-term market strength.

As I said before, Cardano really needs to be at the minimum above $1, which coincidentally is its 200 DMA. Another issue is that the drop in volume does not confirm the recent price rally, suggesting that investors should be careful of unnecessary overexposure.

Cryptos to Watch: XRP (XRP)

A conceptual image for Ripple's XRP (XRP-USD) token.

Source: Shutterstock

Despite being a crowd favorite, XRP (XRP-USD) was not immune to disappointing volatility. When it hit a high of nearly 41 cents in the early hours of January 6, international investors were no doubt encouraged by the fact that the coin – which is the subject of a lawsuit by the Securities and Exchange Commission – could possibly be on the cusp of a major rally.

Unfortunately, those hopes quickly faded, with XRP once again finding itself at the 39 cent level. That said, XRP can offer some inspiring news. According to Brad Garlinghouse, CEO of Ripple Labs who created the XRP coin, volume for the XRP-powered cross-border payment service called On-Demand Liquidity raised to $8 billion during the first quarter of 2022.

This tally compares very favorably to the $1 billion posted during the same quarter last year, suggesting that the overall momentum for XRP involves more than just speculation. If so, this dynamic significantly sets XRP apart from other cryptos.

Still, caution is always key when it comes to virtual currencies, especially at this stage.

Chain link (LINK)

a digital representation of the chainlink (LINK) cryptocurrency

Source: Stanslavs / Shutterstock.com

As other cryptos absorbed significant losses for a week in a row since the late hours of June 6, Chain link (LINK-USD) actually ended up up almost 2%. This is a significant deviation from the top 10 virtual currencies by market capitalization, which except for stablecoins were all down. Could LINK be a bright spot in an otherwise austere environment for digital assets?

Basically, Chainlink has always been intriguing – a favorite among InvestorPlace analysts. Using its unique architecture, Chainlink enables greater utility for smart contracts by incorporating off-chain data into decentralized transactions. For example, a smart contract enabled by LINK can facilitate transactions involving the price of coffee beans, which represent an “analog” construct.

Moreover, LINK has a very attractive price now, around $7.60 at the time of writing. Essentially, the entry beacon discounts a time capsule opportunity for investors who unfortunately saw Chainlink break above $50 at its peak. Nevertheless, the same precautionary principle for other cryptos also applies here.

Cryptos to Watch: Helium (HNT)

The logo of the crypto Helium (HNT).

Source: Shutterstock

As of this writing, the top performing crypto based on the previous week is Helium (HNT-USD). Touted as a blockchain-powered decentralized network for the Internet of Things – specifically smart devices – the Helium platform allows low-powered wireless devices to communicate with each other and send data over a network of knots.

Presumably, helium can help reduce growing wealth disparities by transmitting technological equity. Essentially, by enabling greater connectivity capabilities for historically disenfranchised communities around the world, this blockchain technology has the potential to have a significant impact.

Interesting way, Coinpaprika.com suggests favorable liquidity for helium, with the metric tilting towards the bullish spectrum by a magnitude of 7%. Is this and its outperformance against other cryptos enough to give it a shot with HNT?

If it can break above the $10 resistance line, it could become interesting for optimists. However, with HNT being a smaller player, it is likely subject to the whims of other cryptos. If the sector drops, don’t be surprised to see a return to $4.

As of the date of publication, Josh Enomoto held a LONG position in BTC, ETH, USDT, ADA, XRP and LINK. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to investment markets, as well as various other industries including law, construction management and healthcare.

Previous Saudi Arabia Mobile Network ICT Infrastructure Services Market, By Service Type, By Deployment Mode, By End User, By Region, Competition, Forecast & Opportunity, 2017-2027
Next Student loan pause could be extended while borrowers wait for forgiveness