We reached out to several experts to find out which altcoins are worth buying right now.
Victor Argonov, EXANTE analyst
This crisis has become a serious try-out of various assets for strength, and the behavior of cryptocurrencies was especially interesting. In the first half of March, cryptocurrencies fell along with all equities, and investors transferred capital mainly into the dollar. But after the Fed announced urgent measures, theoretically threatening the devaluation of the US currency, cryptocurrencies began to move in the opposite direction to the indices and partially won back the fall.
The biggest interest is the total dynamics of currencies since the beginning of the year when the market began to grow after December lows. For some currencies, including bitcoin (EXANTE: Bitcoin), the final effect was negative: on January 1, the BTC rate was about $7300, at the peak of February 13 — $10400, at the low of March 12 — $3800, now — approximately $6400. Three-month decline is 19%. But there were also currencies that turned out to be positive in the quarter. They are the one that the investor should pay attention to as they have shown an increased ability to resist the crisis.
Here are the currencies of the top-30 capitalization, which showed a growth of at least 10% over the last three months:
- Bitcoin SV (BSV): + 61%. The scandalous fork of Bitcoin Cash, developed by Craig Wright, who claims to be the "true Satoshi Nakamoto." The currency has more than once been accused of centralization and susceptibility to manipulation, but it has stably maintained its place in the top ten capitalization so far;
- Tezos (XTZ): + 14%. The most popular PoS coin for exchange stacking. Actively used in this capacity since the end of 2019. It is considered to be as one of the least centralized PoS coins;
- Unus Sed Leo (LEO): + 24%. The internal token of the Bitfinex cryptocurrency exchange;
- Chainlink (LINK): + 17%. A network of oracles for the operation of smart contracts of various other blockchains, such as ether (ETH) or tezos (XTZ);
- Huobi Token (HT): + 16%. The internal token of the Huobi cryptocurrency exchange;
- Crypto.com Coin (CRO): + 31%. The currency of the Crypto.com payment company, which is focused on the introduction of cryptocurrencies in real trading;
- Dash (DASH): + 51%. One of the most popular anonymous coins, which have the glory of especially "off-system" assets, accepted by no means on all exchanges, but rather independent of classical cryptocurrencies;
- NEM (XEM): + 16%. Based on the Proof-of-Importance (POI) principle cryptocurrency, which distinguishes it from most other currencies using the Proof-of-Work (POW) or Proof-of-Stake (POS) principles. POI resembles POS, but in addition to finances in the wallet, it also takes into account transactional activity and the time spent by the wallet on the network.
Alexander Kuptsikievich, FxPro Lead analyst
The first and foremost thing that I want to emphasize regarding altcoins at the moment is a rollback in price to levels that preceded the 2020 rally. Almost all altcoins cost equally or lesser. The threat of a new world war in January and quite low price levels could spur investors to build up crypto assets, while the collapse of stocks and the pandemic "cut off" the entire volume of growth. Currently, the market is drowning in depressive moods. Everyone understands that the consequences of the epidemic are only beginning to unfold, while cryptocurrencies have temporarily lost their attractiveness to institutional investors.
As before, you should pay attention to ether. First of all, the price fell to approximately $130 at the beginning of the year. The maximum of the coin jumped up to almost $300 in mid-February. Regardless of the type of investment: speculative short-term or long-term fundamental, the coin is suitable for everyone. On its basis other projects are built and tokens are issued. It is believed that this is one of the projects that will survive any market turbulence.
It is likely that the price minimum for altcoins has not been passed, however, the current price levels are very attractive. From other examples: XRP at the beginning of the year was worth $0.19, now it is trading for $0.17. Litecoin cost $41, now — $39. EOS before the rally cost $2.6, now — it is trading at $ 2.2. Binance Coin was trading at the beginning of the year for $13.8, now you can buy it for $12.7. Stellar rolled back in price to the beginning of the year at $0.04. Monero is trading around levels before the rally at the $47 mark. And these are only the leading altcoins. If you take Zcash, Decred, Waves, Steem, Zcoin — all these coins now cost either the same or lesser than at the beginning of the year.
Oleg Chebotarev, journalist, crypto-investor
The global crisis has a significant impact on the cryptocurrency market, quotes fluctuate significantly and unpredictably, however altcoins can certainly be considered as a safe heaven during a pandemic and financial collapse.
Just as usual I advise you to increase your investment portfolio in ETH as we can see this currency is quite stable due to its own wide infrastructure and confident distribution among millions of loyal users.
Also, it has been the third month in a row, I advise to increase account for XRP — this is one of the few altcoins that I unconditionally trust, since they have an established responsible reputation, serious functionality and a huge number of users.
Once again, I would like to emphasize that in the current crisis times, it is necessary to treat any purchases on the cryptocurrency market with great care. It is no secret that becoming a fallback option for saving cash in the global crisis the cryptocurrency market will go up but a variety of scenarios are possible.
Dmitry Gurkovsky, RoboForex analyst
During March the cryptocurrency market dipped more than enough. Will April be a time of recovery? From the one hand it is quite possible, considering how much the digital assets have fallen in price. On the other hand, the fears of the global financial market have not disappeared, so the search for the "bottom" may continue.
Over the past few weeks, ETH has been virtually a leader in lowering prices — only oil has fallen in price more than ETH. Failure in price can be the catalyst that will contribute to the restoration of value. There are currently no fundamental drivers that could support ETH. The price of altcoin balances around $132 and can rise to $160 if the external background does not present new unpleasant surprises.
Monero cryptocurrency dropped into the downward trading channel on February 15, but after the March 13 low test at $26.1, sales stopped. At the beginning of April, the XMR rate is trading around $47.6 with a potential recovery to $55, if there is no stress from the outside.
Altcoin runs the risk of being stuck in the sidewall if the external background does not fundamentally change. Borders of the side trade channel ~ $0.12−0.18. However, if the conjuncture and interest in risk change significantly, XRP is able to rise to the area of $0.2-0.22.
Both Stellar and Cardano, follow similar patterns: the cryptocurrencies are waiting for signals to go beyond the side. In the first case, the increase target is located at the level of $0.055, in the second — $0.04.
Igor Kuchma, TradingView analyst
We are experiencing another crazy year in both the stock and cryptocurrency markets. Bitcoin began 2020 with good growth, but failed to keep up with the up-going trend and crashed in late February, taking with it the rest of the cryptocurrencies. Obviously, the price correction is completely normal, but it is worth paying attention to the general trend, which remains downward.
Recently, the cryptocurrency market has shown a high degree of volatility, but there is no need to speak about clear signals that speak in favor of long-term growth. The downtrend retains its potential in the case of bitcoin. If the BTC price drops below $5400-5600, a drawdown of up to $4740 is possible. Moving up, in turn, can send BTC to the level of $8220.
The growth potential is very small, approximately 20% if you enter now as the reversal was in the middle of the month. With a rollback, the buying potential is much greater, but you need to wait for a test level of at least $5300 to double. There will already be a growth of 50%.
Among the potential altcoins that you could pay attention to, I would like to mention ether and XRP.
Ether returned above the dynamic support of $126, tested for correction, potential growth to $188 short-term, $259 — long-term, that is, approximately + 50% growth in the coming month.
XRP likewise returned above dynamic support, tested it twice over the past three days ($ 0.162). Potentially can double its value in the medium term up to $0.29.