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7 Cryptos to Watch as Digital Assets Gain Some Momentum

cryptos - 7 Cryptos to Watch as Digital Assets Gain Some Momentum
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Expert opinions on cryptocurrencies offer more than one explanation for the current market. I’m sure that’s the view most people will have regarding recent statements from Rosie Rios, former US Treasurer and visiting scholar at Harvard University. per CNBC In the report, Rios notes that “the train has already left the station” for those who were considering investing in cryptocurrency now.

But even Rios doesn’t necessarily suggest that you can’t make money from digital assets. However, she recommends asking basic questions, such as, “Is the product workable?” or “Is there room for growth?” before buying.

This is a difficult proposition, because the hype surrounding cryptocurrencies has always been intense. However, this methodology may have become a little easier thanks to the sharp correction in the pricing of the virtual currency.

Since the early days of November, the cryptocurrency has been unable to build on its benchmark valuations, phasing out its gains. But the situation became particularly evident in early December, when concerns about the Federal Reserve’s shift to more hawkish policy were accompanied by concerns about the Covid-19 omicron variant. This led to the collapse of digital assets towards treacherous technical levels.

However, an argument can be made that the market has largely absorbed the news. Many cryptocurrencies regained momentum, which could imply a bottom being signed.

However, debates are raging about where the sector will go in 2022. Some analysts are suggesting that cryptocurrencies could crash next year because they do not offer any fundamental value. After an unprecedented career, the circumstances would not be the most surprising.

And again, what makes this rise different from previous highs in numerical valuations is the mainstream integration. It’s not just about the institutional players (who fluctuate at the best of times) but the broad community that has grown up to support blockchain-based assets.

One thing is for sure – you’ll want to watch these cryptocurrencies closely during this chaotic holiday season:

Virtual currencies are horribly risky, so you don’t want to venture without doing serious due diligence. While relatively low prices may be attractive to opponents, just keep in mind that buying at a low price does not prevent you from being forced to sell at a lower price. Cryptocurrencies are cruelly volatile, end of discussion.

Crypto: Bitcoin (BTC)

Source: Vladimir Kazakov / Shutterstock.com

With Bitcoin’s 200-day moving average (DMA) set just above $47,000, the move to break above $49,000 at the time of writing was an important one.

Since 200-DMA is a long-term measure of market health, BTC can’t really go down without suffering severe consequences. But markets are all about movement, so cryptocurrencies just can’t stand their laurels.

The next logical step for BTC is to reach and surpass the $53,000 level. Why this particular price point? It represents a clear dividing line throughout this year between bullish and bearish sentiment.

Back in the early spring rally, $53,000 provided a major support. In late summer, the resistance imposed. Then, during the November correction, it represented support again. Thus, the December crash was particularly significant as it sent BTC prices below $50,000.

Naturally, I will not feel comfortable with any acquisition behavior towards Bitcoin until it reaches above $53,000. Ideally, I would like to see BTC move into the high 50s range before making any big moves. Of course, you’re welcome to take advantage of the current discount, but no further drop is out of the question.

Ethereum (ETH)

Concept image of a virtual currency based on the Ethereum logo.

Source: Filippo Ronca Cavalcanti / Shutterstock.com

On paper, Ethereum is in a much better position than Bitcoin, sandwiched between 50-DMA at the top and 200-DMA below. However, its price is closer to 50-DMA – at least, as I write these words. Therefore, investors should in theory have more confidence in ETH than its more capitalized cousin.

However, the current price of hair of just over $4,000 creates an intriguing circumstance. This year, it used $4,000 as resistance twice – first during the cryptocurrency’s spring rally, and again in September before ETH broke all-time records in November. Can history repeat itself in 2022?

I wouldn’t rule out the possibility that Ethereum will move higher while other cryptocurrencies are oscillating – yes, even Bitcoin. While BTC has become a store of value and a symbol of financial resistance, Ethereum is the backbone of the blockchain economy. As long as people continue to use blockchain technologies, ETH cam maintains its relevance.

However, a convincing move to surpass the $4,000 limit will be critical to restoring confidence.

Crypto: Binance Coin (BNB)

The Binance coin (BNB) is right in front of the trading charts.

Source: Shutterstock

One of the prominent cryptocurrencies of 2021, Binance Coin is the digital asset that powers the exchange of the same name.

Thanks to the massive enthusiasm for virtual currencies, many investors can’t get enough – especially with altcoins. With the Binance platform offering many more options than its competitors, it is not surprising that BNB has reached ridiculous heights.

At present, Binance Coin finds itself in a similar situation with Ethereum. At the time of writing, its price is just under $539, and it’s approaching a critical technical threshold. The $540 level represents support for the NBB during this year’s spring recovery.

This price point then imposed resistance, first in September and later in October. Recently, BNB was finally hacked before finally undergoing a crypto patch.

Today, it has come back full circle, which means that Binance Coin should start showing significant bullish momentum to inspire confidence. Otherwise, a slowdown around the $540 level could raise doubts – especially since the higher interest rate environment is not necessarily supportive of risky assets.

Solana (SOL)

Solana Blockchain Concept Art (SOL-USD).

Source: Shutterstock

Solana is another cryptocurrency that enjoyed an impressive performance in 2021, the next evolution of blockchain enterprises. Instead of focusing only on peer-to-peer transactions, Solana sent out a Proof of Date protocol. It greatly improves the security and scalability of decentralized platforms. Thus, with the increase in the number of blockchain-based applications, Solana may enjoy even more fundamental importance in the coming years.

However, investors should be aware that market dynamics may not always correlate with the underlying fundamentals. Honestly, probably quite a few Johnny’s who have recently come into the world are not interested in decentralized initiatives. Instead, they just want to make money. This is not a blow against Solana, but rather a circumstance that affects all cryptocurrencies.

Technically, Solana finds herself in an interesting position. At $183, it is a bit shy of the $200 level that served as resistance during this year’s late summer rally and support during the November sell-off. Of course, SOL collapsed in December before swinging higher to its current level.

To trust Solana, though, it’s necessary to go for over $200. Otherwise, SOL presents significant risks at this mysterious juncture.

Encoder: Cardano (ADA)

Cardano concept coin (ADA).

Source: Shutterstock

One of the “classic” altcoins, Cardano enjoyed a remarkable year in 2021. Despite a sharp correction in the crypto fallout, ADA coins maintain a solid profile, up 638% year-over-year.

However, it has been a tough ride against a newer framework. Over the next month, Cardano gave up 25% of the value.

After holding the $2 level for some time, seeing it around $1.33 is disappointing. Not surprisingly, ADA is also one of the weakest cryptocurrencies by traditional analytical standards.

Basically, the coin is clearly below the 50 and 200 DMA. Also, the 50-DMA crossed below the 200-DMA, which usually indicates bears in control of the market.

Given how volatile the coding is, it wouldn’t be wise to write off Cardano entirely. However, the ADA needs to show bullish momentum here, right now. The $1.45 level is the support/resistance line to watch, as it represents a dividing line between optimism and pessimism. Trading the ADA below this point is not encouraging.

XRP (XRP)

A concept coin for XRP (XRP).

Source: Shutterstock

One of the most controversial cryptocurrencies, XRP finds itself embroiled in a lawsuit. As you know, the Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs, the founder of XRP, alleging that it used cryptocurrency distribution to bypass securities laws. In fact, as I write this on December 22, it’s the lawsuit’s first anniversary.

Congratulations I guess?

Seriously , Investor Contributor Mark R. Hake may have some positive news: filing a bias lawsuit against the SEC may help XRP. According to the lawsuit, [SEC officials] It has a conflict of interest while declaring digital assets like XRP crypto as a security… They have declared others like Ethereum (ETH) not to be a security, based on a conflict of interest.”

However, relying on the outcome of lawsuits — or in this case, the outcome of one lawsuit to influence another — is a risky business. Technically, XRP is in an ambiguous position. Although it has good momentum under the conditions, it is also trading below the 50 and 200 DMA. Gamblers should only consider buying now.

Encoder: Terra (LUNA)

Digital display of Terra tokens (LUNA-USD) above the circuit board.

Source: Shutterstock

If there’s one crypto that doesn’t really feel pain, it’s LUNA, which supports the Terra blockchain project. Over the course of the following week, the coin surged 52%, an amazing performance while many other cryptocurrencies barely held on to it. Much of this positive emotion may be due to how unique the network is.

for every CoinMarketCap, “Terra is a blockchain protocol that uses stablecoins pegged to fiat currencies to power global price-stable payment systems. According to its white paper, Terra combines price stability and the widespread adoption of fiat currencies with resistance to Bitcoin (BTC) censorship and offers fast and affordable settlements.”

Of course, the central irony about Terra is that although it was designed to combine the advantages of decentralized and centralized protocols to stabilize the usually wild crypto sector, LUNA itself was unstable. However, since it is unstable in the positive direction, proponents are not completely complaining.

Personally, I’m hesitant to bet the LUNA at this juncture. Cryptocurrencies that have decoupled from the Bitcoin link tend to fall out of the line. However, I’m not against the idea of ​​pumping a little speculative money into it, just to see what happens.

Posted in Josh Enomoto He held a long position in BTC, ETH, ADA and XRP. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.

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

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