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7 Best Cryptocurrencies That Could Hit New Highs Soon

Best Cryptocurrencies - 7 Best Cryptocurrencies That Could Hit New Highs Soon

Source: Shutterstock

Bitcoin (CCC:BTC-USD) has been a volatile asset over the past few months, but has finally gone on to make new all-time highs. That’s got us looking at what might be the best cryptocurrencies to buy that may also go on to make new highs.

It’s no surprise that Bitcoin eventually made new all-time highs. Even though it undergoes massive moves due to swaying sentiment, the demand for Bitcoin remains too high.

JPMorgan (NYSE:JPM) CEO Jamie Dimon argues that it’s worthless, and maybe it is. But to a degree, so are a lot of assets, technically speaking. After all, the dollar is just a piece of paper. So is the euro, yen and Swiss franc.

So what might be the best cryptocurrencies to make new highs? Let’s look at seven of them:

Best Cryptocurrencies for New Highs: Ethereum

A concept image of a virtual coin based on the Ethereum logo.
Source: Filippo Ronca Cavalcanti / Shutterstock.com

Not only is Ethereum the second-largest cryptocurrency by market cap, but when I started writing this, it was so close to hitting new all-time highs on the most recent rally. Like Bitcoin, Ethereum hit its low in late July and went on a stunning rally.

Earlier this month, Ethereum reached more than 150% from the July low.

Between starting this article and finishing it, Ethereum did indeed make new all-time highs. I now wouldn’t put the $4,900 to $5,000 area out of the realm of possibilities for this cryptocurrency.

However, the quality of Ethereum is another driving factor in being long. While many coins are making a large push higher, not all of them are of very high quality. Ethereum is one of the few that acts as a store of value and has actual practical applications.

Those applications are only growing as Ethereum 2.0 rolls out. That marks a shift in the cryptocurrency from a proof-of-work system to a proof-of-stake system. Ultimately, that will cut back on energy spent on mining operations and improve Ethereum’s network speed.

That should help make it more practical in every day situations and thus, increasing its value to investors.

Cardano

Cardano (ADA) token with blue and orange digital background.
Source: Stanslavs / Shutterstock

With the recent momentum in cryptocurrencies, many coins are hitting new all-time highs. One coin that’s not, though, is Cardano.

In fact, ADA-USD remains 33% below its all-time high. There are two sides to this coin though. The first is that its failure to rally is more of a concern than an attractive quality. Underperforming assets — also known as relative weakness — are a concern among traders.

Put simply, we don’t like assets that are significantly underperforming vs. the broader market and/or its peers.

The flip side to that coin is that perhaps Cardano can make up ground and give bulls a nice return as it catches up to its peers. I wondered if it may be the next crypto to hit all-time highs, but are also aware of the concerns.

Like Polkadot, Cardano was founded by one of the former Ethereum founders. That is Charles Hoskinson, for those wondering. Like Ethereum 2.0, Cardano is a proof-of-stake cryptocurrency, and it has some important security features:

“Cardano is provably secure against bad actors and Sybil attacks. Every transaction, interaction, and exchange is immutably and transparently recovered, and securely validated using multi-signature and a pioneering extended UTXO model.”

Best Cryptocurrencies for New Highs: Shiba Inu

A smiling Shiba Inu dog in front of a bright yellow background.
Source: Shutterstock

Despite the extremely low price of Shiba Inu — trading at about a two-hundredth of a penny — it has been a shockingly good trading vehicle. I was looking for a major push to new highs, but admittedly, I did not expect a 200%-plus move in just a few days.

The cryptocurrency has recently calmed down lately and even given us a decent dip to trade.

Now bulls are wondering if this pause will be enough to justify another ramp to all-time highs. If the #ShibArmy comes out to play, it very well may squeeze even higher in the coming days and weeks.

As long as there’s a bid in the crypto market, Shiba Inu is always a potential runner. That said, let’s not forget the risk that cryptocurrencies can carry. The Squid Game Coin recently saw its value evaporate overnight.

I’m not saying that will happen to Shiba necessarily, but for a coin that was aimed at competing with Dogecoin (which was started as a joke), it’s hard to consider taking more than a “lotto-sized” flyer on something like this, even if new highs are on the horizon.

Dogecoin

A close-up shot of a Shiba Inu with a grinning face.
Source: Wollertz / Shutterstock

Speaking of Dogecoin, I think we need to keep an eye on this one too. These low-priced cryptocurrencies are always on watch for a squeeze to the upside. The fact that the crypto market trades 24/7 could aid in such a rally to new highs, even if Dogecoin remains 65% off its all-time highs.

As we saw with Shiba Inu, an upside squeeze could happen at almost any minute. Further, there doesn’t need to be an obvious catalyst and it doesn’t have to take long for a rally to send Dogecoin to new highs.

Heck, in just one day on Oct. 28, Dogecoin rallied more than 40% when it was at the session high.

I’m not necessarily a big fan of Dogecoin, but I understand that these sub-$1 coins have the potential to really scorch higher. In Dogecoin’s case, it happens to have Tesla (NASDAQ:TSLA) CEO Elon Musk as a fan as well. One tweet could kickstart the whole thing.

Best Cryptocurrencies for New Highs: Polkadot

Daily chart of DOT-USD
Click to Enlarge
Source: Chart courtesy of TradingView

When I began this article, Polkadot was almost 15% below its all-time high made in May. Ironically, the bear market in growth stocks came to an end right around the time Polkadot topped out.

It went on to lose about 80% of its value by late July.

In recent trading though, a strong five-day rally was enough to send Polkadot to new all-time highs before the recent dip. At the current low, its down about 11% from the all-time high of $55.

Given the recent momentum and the current dip finding some buyers, I think Polkadot is a very good candidate to rebound back up to (and likely through) $55. It’s possible we see a slightly deeper decline, which could put the $45 breakout level and the 50-day moving average on the table.

Either way, dip-buyers could make a stand in this one soon.

Litecoin

litecoin as a best cryptocurrency to buy
Click to Enlarge
Source: Chart courtesy of TradingView

Like Cardano, Litecoin presents some concern given how badly its lagging its larger crypto peers. Because of Dogecoin’s low price and cult-like following, we know there’s a chance it could explode to new highs at some point down the road.

We don’t actually know what may kick off the possible surge in Litecoin at the moment. It doesn’t have a loyal and aggressive following and its price of roughly $200 a coin isn’t sub-$1 cheap like Dogecoin.

Maybe that makes it a poor candidate for new all-time highs.

However, I figured I had to write about Litecoin as it’s been around for a long time (well, “long” in the sense of the crypto market) and if it happens to catch a wave of momentum, you don’t want to miss out.

So what can we watch for?

Look for a move over $240. That could get the fireworks going in this one.

Best Cryptocurrencies for New Highs: Bitcoin

man in glasses holding a coin that has the Bitcoin (BTC-USD) logo
Source: Shutterstock

It’s pretty anticlimactic to end this story with Bitcoin. But how can we leave off the biggest cryptocurrency of them all?

Companies are adding Bitcoin to their balance sheet, while it remains a red-hot focus among active traders. Bitcoin has been an absolute leader in the recent crypto run, with the gains likely giving many crypto investors the funds necessary to buy up other coins.

In any regard, Bitcoin hit an all-time high on Nov. 11 when it reached $68,792.

Unless it really starts to roll over, I wouldn’t be surprised to see this one pop to new all-time highs before the end of the year. It’s good to see Bitcoin consolidating some of its recent gains, and that’s healthier than a relentless upside rally.

Even better, the technicals have done a wonderful job of guiding the way in this one. Let’s look for that to continue going forward.

On the date of publication, Bret Kenwell did not have (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 the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2021/11/7-best-cryptocurrencies-that-could-hit-new-highs-soon/.

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