How to determine a project worth investing in?
There are a couple of simple indicators that can give an idea of the seriousness and potential of each cryptocurrency:
Its market capitalization, that is, the position in which it is located, and the share of the coin in the total market value of cryptocurrencies;
Community of followers and developers. When a cryptocurrency has a large and developed community, this often indicates good prospects for the project;
News agenda: successful projects will interact with the media, and thus increase the credibility of their cryptocurrency;
Expert analytics of the leading economic portals dedicated to cryptocurrency.
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Top 5 cryptocurrencies that deserve to be in the portfolio of every crypto investor
News analysis:
The Ethereum 2.0 deposit contract now contains 739,520 ETH ($424 million) with a required 524,288 ETH. This exceeds the threshold required to activate the Ethereum 2.0 upgrade.
The creator of Ethereum, Vitalik Buterin, stated on his Twitter account that the system for launching ETH 2.0 has crossed the 50% mark. After that, the value of ETH rose to $600.
The value of BTC locked in Ethereum has exceeded $3 billion. The current Bitcoin bull cycle has contributed to the increase in the number of BTC tokenized in Ethereum. After hitting an all-time high of 175K BTC last week, the number of BTC locked up has dropped to 170K, according to DeFi Pulse.
Technical analysis:
On November 20, 2020, ETH rose to $489. On November 22, an attempt was made to stop the growth, but the “bulls” quickly neutralized this threat. Both moving averages were sloping upwards, indicating that the bulls were in complete control of the market.
According to analysis by TradingView analyst Vince Prince, Ethereum has formed a preliminary rising wedge formation. According to the expert, now the market is ambiguous and both sharp falls and rapid ups are possible. Stabilization will most likely happen when ETH moves into the reserve cluster, marked in blue on the chart, where several support levels are combined. Ethereum has good potential to bounce within this cluster and form upward momentum from there, Prince predicted.
Ripple (XRP)
Market capitalization: $30 billion
Technology: XRP is a centralized cryptocurrency created by Ripple Labs as a solution that allows banks and financial institutions to use the power of blockchain technology to improve cross-border transaction systems.
News agenda:
Ripple is looking for a director to work with central banks to create a digital currency;
Ripple’s new USPTO filing: PayString trademark;
During the day, the XRP token rose in price by 60% and reached its maximum since May 2018.
Technical analysis:
In the past few days, XRP has proven to be one of the most effective among the largest altcoins by capitalization. There has been a parabolic rise as the bulls are in full control of the price movement of the token, explained the analyst under the nickname CryptoNekoZ. He suggests that the coin may cross the threshold of $0.7 and continue to rise in price in the long term.
Growth Outlook: The price of XRP jumped 91% over the past month as the digital asset caught momentum. The catalysts for XRP strength are the growth in the number of unique addresses, the buyback of tokens by Ripple, and the possible launch of a new product.
Chainlink (LINK)
Market capitalization: $6 billion
Technology: Chainlink is a decentralized network whose purpose is to connect smart contracts with data from the real world.
Technical analysis:
Vince Prince points out that LINK was trading in an ascending channel formation where it formed an important triangle. The coin has now fully formed with a break above the border and closed above the volatile green candle.
LINK has already retreated back to the upper border once, which it is now testing. The fact that LINK broke above the border gave the currency a nice bullish momentum, the analyst said. This structure gives good potential for further movement and makes LINK one of the most optimistic cryptocurrencies in the long term.
Growth prospects:
From the point of view of fundamental analysis, LINK is currently subject to a bull market wave, but it may fall in a short time: the news agenda is silent, and there are no updated reports on the implementation of the project on the platforms. However, the trend points to further growth. The controversial position of LINK is the basis for short-term speculation on the wave of rising asset values.
Litecoin
Market capitalization: $5 billion
Technology: Litecoin is based on the Bitcoin protocol, but differs in the hashing algorithm used, hard limit, block transaction time
News analysis:
Binance Will Add Option Contracts to Litecoin
Technical analysis:
According to TradingView analyst Vince Prince, on the two-hour chart, Litecoin still has strong resistance levels, so the price may still decline. At the same time, Litecoin continues to trade within the ascending channel formation. In addition, Litecoin has an important descending resistance line marked in black on the chart. This may indicate a future trend change to a downtrend.
