It's been an eventful month for the cryptocurrency market. Because in recent days, there has been a significant correction. Problems with the introduction of bitcoin as El Salvador's first state currency led to a rapid sell-off in many cryptocurrencies. These problems served as a trigger for an urgent correction. After all, the price of many digital currencies has risen rapidly in recent weeks. In addition, there were considerable leveraged positions, which have now been partially reduced as part of the "flash crash". In some cases, triple-digit returns were recorded in a single month. The bulls dominated the crypto market and didn't give in in the fight against the bears. A short dip was followed by a rapid recovery. Many crypto-currencies are up 20-40% in the last 24 hours and have already recovered the price losses of recent days. The bull market could now continue.
So it's time to start thinking about which cryptocurrencies to invest in right now. The following article looks at cryptocurrency projects that are promising in the medium to long term and offer chances of above-average returns. However, caution is called for all investors who can't cope with the generally high volatility. Because despite possibly rising prices, painful corrections are also likely to occur again and again, putting the crypto portfolio in the red.
Buying bitcoins?
For long-term investors, bitcoin as the most valuable cryptocurrency remains a core investment. After the BTC price traded sustainably above US$50,000 last week, many crypto experts saw a new all-time high within reach. However, problems associated with the introduction of bitcoin as a state currency in El Salvador have left many investors hesitant about bitcoin's legitimacy as a means of payment. Currently, the price of BTC is only quoted at around 45,000 US dollars. Nevertheless, there's no way around the most valuable cryptocurrency if you want to build a diversified crypto portfolio. Indeed, even if its relevance as a means of payment is questionable, bitcoin could fulfill its role as a digital reserve currency and money storage medium.
Horizontal support between 44,000 and 45,000 US dollars largely held for bitcoin. At the same time, the 200-day line was breached several times, but this did not trigger any significant selling. The GD 50 is currently at a healthy 44,600 euros. Downside potential appears to be limited, at least in the short term, and a chart-based assessment continues to nurture hopes of new highs this year.
Buying Ethereum?
The second largest cryptocurrency, Ethereum, has also seen significant pressure over the past trading week and is currently up around 10% over the past seven days. Meanwhile, the price even seems to have recovered; in the last 24 hours, the price has only fallen slightly and is trading almost at the same level, at around 3,400 US dollars. Ethereum's sharp fall ended at the US$3,000 mark. This was followed by a counter-movement, which even took the price above GD 20. The floor at US$3009 serves as support, followed by further technical support at around US$2,900. As long as the ETH price remains above this support, the chart remains largely positive. At the same time, a considerable proportion of leveraged positions were liquidated during the rapid crash. Many market players still believe that a clean-up correction is urgently needed for a further rise in prices.
With the upgrade to Ethereum 2.0, blockchain remains the tool of choice for smart contracts. Although competition continues to grow, Ethereum is the market leader and enjoys great popularity, particularly among institutional investors. As a core investment in the cryptocurrency market, Ethereum could reach new heights in the medium term. However, investors should keep an eye on the competition around Cardano, Solana and co. to see if Ethereum can master its problems. After all, horrendous gas charges, lack of scalability and scalable speed have haunted the Ethereum network for some time. Ethereum 2.0 is an important step in the right direction, but it won't be the last necessary step in the blockchain's development.
Buying Cardano?
Meanwhile, the Cardano crypto-currency project has become the world's third-largest crypto-currency. The rise in ADA's price last week led to an increase in its market capitalization. Meanwhile, ADA has a market capitalization of around US$80 billion – the gap to 4th place in the cryptocurrency rankings continues to widen, according to CoinMarketCap. After recently marking new highs at US$3.09, rapid selling followed. ADA is currently trading at around US$2.50. The crash has been particularly severe for Cardano after the price trend in recent weeks has been significantly more explosive than that of its crypto competitors.
The risk of overheating is now reduced. The price is more than 20% below the all-time high. The bulls have now succeeded in sustainably defending the important support at US$2.38 for Cardano. If support falls, the next support will be at US$1.87. Although there are still some doubts about the ADA chart. Nevertheless, an investment could pay off in the long term. Due to the uncertain starting position, it is advisable to proceed with ADA in tranches. With the Alonzo fork one of the most important updates of all time, smart contracts and other DeFi functions are now implemented in the blockchain – ADA therefore remains in an exciting position and is increasingly developing as a staple investment for crypto-currency investors behind BTC and ETH.
Acheter Chainlink ?
But it's not just the world's most valuable coins that promise above-average returns. Rather, it's the second-tier cryptocurrency projects that could gain in importance in the medium term. Chainlink remains in an interesting position – currently number 14 among global crypto-currencies with a market capitalization of around 12 billion US dollars. After the significant correction, it is still down over 5% for the week. Chainlink is currently available at a discounted price. However, this is put into perspective if we consider the monthly performance of around 15%. The price of Chainlink is currently quoted around GD 20, or US$28.12. After that, the psychologically important price level of US$30, where GD 7 currently stands, should be decisive.
Anyone interested in the Chainlink project should therefore keep a close eye on price developments over the next few hours. Connecting blockchain technology to the real world via so-called oracles is Chainlink's main concern. This could encourage the creation of so-called dApps, as blockchain independence and the difficult validation of real-world data have long been one of the most pressing problems in establishing smart contracts.
Buy VeChain?
VeChain is a cryptocurrency project with a manageable market capitalization. Market capitalization is currently just under eight billion US dollars – compared to the top 10 in the cryptocurrency market, there's a lot of catching up to do. Over the past two weeks, VET's share price has fallen by around three percent. This means that the current chart doesn't look very promising. It is currently trading well below the moving averages of the last seven and twenty days, which were underestimated during the last selling move. The GD50 is currently at 0.111478 US dollars – after all, there's still more than 10% downside potential.
Nevertheless, on a fundamental and long-term level, things remain positive for VeChain. Indeed, VeChain acts as a leading public blockchain for businesses that specifically want to drive innovation and disruption using blockchain technology. With affordable fees, reliable security and scalable blockchain, the aim is to help businesses position themselves for the future. At a time when companies need to invest more and more in digitization, this looks like a promising business model.
Buying Elrond?
In recent weeks, the Elrond cryptocurrency project has regularly featured among the best coins of the day. It is also positioning itself as a forward-looking Internet Scale Blockchain project. Over the past 24 hours, for example, the price has risen by around 33%. This translates into a weekly increase of over 15%. ELGD is currently on track to reach the April 2021 highs again in the near future. The all-time high of around US$244 is still a double-digit distance away. Nevertheless, momentum is positive for investors.
Blockchain is powerful from a technical point of view. The Elrond network can handle far more transactions than Ethereum or Bitcoin. At the same time, security is permanently reinforced by the Secure Proof-of-Stake consensus mechanism. The technical prerequisites are good. However, despite years of development, Elrond has only been able to win a few pilot projects. Nevertheless, there is potential for above-average returns here. From a graphical point of view, ELGD is currently convincing. Basically, we need to keep a close eye on the development of Elrond and the competition.
Acheter Verasity ?
Over the past 24 hours, Verasity's price has exploded by around 20%. This means the cryptocurrency is back in positive territory on a weekly basis. Last month, the price doubled. However, with a market capitalization of around US$280 million, VRA is one of the smallest crypto-currencies harboring high risks in addition to above-average opportunities.
It's a video platform that provides player technology to various game publishers around the world. The combination of blockchain technology and the gaming megatrend looks promising. Viewers, publishers and advertisers all use the VRA token to target the platform. The full potential can hardly be estimated today. But Verasity is on a mission to solve existing problems in online gaming to promote viewer engagement and thus increase monetization in the medium term by ensuring that intermediaries no longer have a relevant advantage.
