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3 Cryptocurrencies to Watch That Will Make or Break Your Portfolio
Cryptocurrencies to watch are everywhere, or at least they appear to be. Price volatility among some of the world’s largest tokens continues, as these digital assets remain difficult to value. This reality is true if we are talking about assets with a market capitalization of $1 trillion Bitcoin (BTC-USD) or its small-cap competitors. It is this volatility that has limited the total number of investors in this sector for a long time.
The fact is that the long-term returns for many stable and growing crypto ecosystems speak for themselves. There are “make or break” assets in this space that have the potential for huge long-term growth and significant downside over certain periods. It is this volatility that many focus on, but taking a broader look, it is also clear that long-term trends are generally in favor of investors.
Investors should focus on the top three cryptocurrencies to watch as long-term holdings in the deciding basket.
Solana (SOL-USD)
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For investors optimistic about the future of decentralized finance, Solana’s (SOL-USD) high-speed, low-cost networking is a key catalyst worth considering. Currently, several technical factors are driving most of the momentum around this token, with Solana approaching the crucial point at $133.77, likely deciding its immediate direction. Above, bullish sentiment; below, the potential selling pressure. Many technical investors point to key resistance levels at $145.41, then $160.58 and $175.43 as likely targets for buyers.
Speculation surrounds whether Solana will reach $200 in May. Recent data suggests a potential price reversal as SOL’s volume has decreased during its decline, signaling the end of the downtrend is nearing. However, the high financing rate and decreasing RSI indicate the possibility of a continued downturn.
Over the past 24 hours, Solana has faced growing bearish sentiment, putting its $200 potential in May in jeopardy. It fell more than 5%, continuing to decline 27% in 30 days. Despite the concerns, technical indicators offer hope for a Solana rally.
Avalanche (AVAX-USD)
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Layer 1 Blockchain Avalanche (AVAX-USD) fell 2.9% over the past 24 hours to $34.18, reflecting a bearish trend and a market capitalization of $12.96 billion, with trading volume down 10% to $311 billion . Currently, this project has 378.2 million coins in circulation, with a maximum supply of 715 million.
However, AVAX remains stable, holding above support levels despite pullbacks, with RSI around 48, indicating potential stabilization and growth. In my previous In an article on cryptocurrencies, I stated that despite a 55% drop from $65 to $30 on April 13, with a rebound to $38, AVAX remains profitable at 57.68%.
Aside from the technical aspects, there are some unique factors that investors are considering right now with this growth project. Recently, avalanche announced integration with fintech Stripe, enabling more accessible wallet financing and digital asset purchases via the Core ecosystem wallet. Stripe now supports stablecoin transactions after previously avoiding cryptocurrencies due to volatility.
John Egan, Stripe’s head of cryptocurrency, began working with Avalanche to align the company’s goals with the goal of making web3 more accessible. Stripe will manage KYC, fraud and compliance for this partnership. Avalanche investors expect the integration to attract more capital, boosting token prices over time.
Ethereum (ETH-USD)
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Although Bitcoin has said that 2024 will be its year, Cathie Woods he claims Ethereum (ETH-USD) might be a better option. With a target market capitalization by 2032 of $20 trillion and over 120 million tokens in circulation, this could command a price of $166,000 per token. This is if analysts understand it well (and this is very difficult to do in this area).
At that price, six ETH tokens could amount to $1 million. Etherum’s market cap target is $20 trillion, but experts believe that won’t happen anytime soon. Wood suggests that if Ethereum could offer greater utility and adoption, it could increase its token price.
Ethereum is very beneficial for smart contracts, making it an important asset to have for the long term. Investors should focus more on this token than other crypto options to achieve substantial gains.
As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Chris MacDonald’s love of investing led him to earn an MBA in Finance and take on numerous leadership roles in corporate finance and venture capital over the past 15 years. His past experience as a financial analyst, combined with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investment outlook.