"Altcoin season has begun." Experts named promising cryptocurrencies

Bitcoin hit a new all-time high in December, but many altcoins are still far from their price records. It is important to choose in advance what to invest in so as not to miss the …

Bitcoin hit a new all-time high in December, but many altcoins are still far from their price records. It is important to choose in advance what to invest in so as not to miss the opportunity to earn

The current dynamics of the cryptocurrency market repeats the end of 2017. As then, the price of bitcoin in December set an all-time high. Three years ago, the BTC rate reached $ 20 thousand, this time it exceeded $ 24 thousand.

Following Bitcoin, altcoins began to set price records. In 2017, the XRP token began to rapidly rise in price immediately after BTC reached $ 20 thousand, and within two weeks added over 400% of its value. At the same time, the TRX token has risen in price by more than 700%.

Since the beginning of autumn, many popular altcoins have also shown significant growth. But unlike Bitcoin, they are still far from the highs. Ethereum, in order to update the record, needs to rise in price by another 140%, the XRP token – by 1400%.

Altcoin season is already underway

The head of the fintech company Exantech Denis Voskvitsov believes that the altcoin season has already begun, but is still in the initial stage. Due to the arrival of institutional investors on the market, bitcoin has risen in price to $ 24 thousand and has now become expensive for most retail investors. Now the market has "taken a breather", but the confident overcoming of the BTC level of $ 20 thousand and the establishment of a new maximum suggests that altcoins have so far passed only a small part of the possible growth, the expert admitted.

He clarified that the altcoin season could be hampered by the fall of bitcoin, if it happens, Voskvitsov continued. On the crypto market, fluctuations in the BTC rate affect the dynamics of other cryptocurrencies. Therefore, a sharp decline in the price of the main digital coin can provoke an even more violent sale of altcoins. But there is another threat as well.

“Altcoins can also be hampered by the actions of regulators. We recently saw how the US Securities and Exchange Commission (SEC) lawsuit against the leadership of Ripple brought XRP down. Such actions in relation to cryptocurrencies can hit the credibility of the industry, ”Voskvitsov warned.

Viktor Pershikov, lead analyst at 8848 Invest, is confident that the altcoin season has already lasted from the beginning of autumn, and has now reached an intermediate stage. At the moment, the most capitalized tokens have formed medium-term price highs and are ready for a price correction, the expert suggested. In his opinion, in the coming months, altcoins will be trading near current values, and growth will continue in the second quarter of 2021.

“From the point of view of cyclicality, most likely, the growth of altcoins will continue starting from the second quarter of next year, while in the first months of 2021 I expect the quotes to move in a narrow range. Taking into account the fact that bitcoin has exceeded its historical maximum, and altcoins are still far from historical price records, it is obvious that next year we can expect significant growth, "said Pershikov.

Alexey Markov, a leading trader at United Traders, thinks otherwise. In his opinion, it is too early to talk about the altcoin season. Now bitcoin is in a confident trend, until the price of the coin stabilizes in the range of plus or minus 5% within a month, you should not think about buying other cryptocurrencies, Markov emphasized. He clarified that the situation could change if Ethereum rises in price to $ 700.

“A good indicator of 'warming' will be the growth of Ethereum at least to the levels of $ 680-700. So far, I see this not earlier than the beginning of February, ”Markov predicted.

What altcoins are promising

Pershikov continued that there are a number of promising altcoins. Among them, he singled out Ethereum and set a goal of $ 900 for it. The expert also noted Litecoin and allowed its price rise to $ 220. Another interesting coin, the analyst called the token of the Binance exchange with the prospect of growth to $ 50.

“ADA, XMR and TRX are also promising tokens and coins for the next year. From the DeFi sector, I would single out UNI and LINK tokens, which next year can find a second wind, like the entire DeFi sector as a whole, "added Pershikov.

Voskvitsov also called Ethereum (ETH) promising options in view of the upcoming update to the second version of the network, although now its rate is high. Perhaps it is worth taking a closer look at the bitcoin forks, which are growing more actively than other altcoins, the expert noted. He also highlighted Litecoin, several anonymous cryptocurrencies, and DeFi tokens.

“It makes sense for investors to look closely at anonymous coins such as Monero, DASH and ZCash. It is likely that DeFi coins will still show their growth potential as the number of tokens blocked in applications increases. It is worth paying attention to Maker, Compound and Aave, ”Voskvitsov suggested.

Markov advised taking a closer look at DeFi tokens and projects that were recently added to the American exchange Coinbase.

Leave a Comment