6 Deeply Oversold Cryptos Worth Buying Right Now

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  •  These six deeply oversold cryptos are worth buying right now, as they are down over 50% so far this year and look set to rebound.
  • Ethereum (ETH-USD) is the second-largest crypto and is off over 71% YTD and over 46% in the last 30 days. Off of this level, the crypto is likely to rebound, especially as the time approaches for the crypto to transition to a new transaction validation system — from proof of work to proof of stake.
  • BNB (BNB-USD) is the 5th-largest crypto out there and is down over 59% since the beginning of the year and down over 33% in the past 30 days.
  • Bitcoin (BTC-USD) is the largest and first crypto and is down over 57.7% so far this year and down 31% in the last 30 days.
  • Cardano (ADA-USD) is the 7th-largest crypto. While its price is off 66% YTD, it is down only 13% in the last 30 days.
  • Solana (SOL-USD) is the 9th-largest crypto. It has had a rough year, with its price has fallen over 80% since the beginning of the year and off over 31% in the last 30 days.
  • Despite being a favorite of Elon Musk, Dogecoin (DOGE-USD) has still tanked this year, off 63.9% YTD and 26% in the last 30 days, according to Coinmarketcap.com. Nevertheless, it has retained its ranking as the 10th-largest crypto in terms of its market valuation.
  • Another meme dog play crypto, Shiba Inu (SHIB-USD) has taken a 71% hit so far this year, including 17% in the last 30 days. That still makes it the 15th largest crypto out there in market cap size, mainly because of the blood bath that all other cryptos have taken.
oversold cryptos - 6 Deeply Oversold Cryptos Worth Buying Right Now

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These six deeply oversold cryptos are worth buying right now, as they are down over 50% so far this year and look set to rebound. Not even the stock market is down this far.

These cryptocurrencies are likely to move substantially higher. Once fears of a recession or a reduction in inflation cause the masses of investors to stop dumping their positions, cryptos will stop falling.

Everyone knows that cryptos are highly volatile. These six cryptos are more so than others and have fallen further among the top 20 largest cryptos by market capitalization.

Just keep in mind that these cryptos are really only appropriate for the most speculative of investors. Many believe, for example, that they have no intrinsic value. So, for “prudent” speculators, if there is such a thing, they usually make sure to limit the amount of cryptos in their portfolio.

And by no means is this any kind of investment advice for anyone. It is simply an observation that speculative investors may begin buying these deeply oversold cryptos. Let’s dive in and look at them:

Ticker Company Price
ETH-USD Ethereum USD $1,117.43
BNB-USD Binance Coin USD $226.42
BTC-USD Bitcoin USD $20,583.67
SOL-USD Solana USD $36.81
DOGE-USD Dogecoin USD $0.063
SHIB-USD Shiba Inu USD $0.00001

Oversold Cryptos: Ethereum (ETH-USD)

Crypto currency etherium. ethereum coin on exchange charts. e-currency Ethereum. Ethereum price predictions

Source: viktoryabov / Shutterstock.com

  • Market Cap: $130.7 billion

Ethereum (ETH-USD), the second-largest crypto, is down over 71% year-to-date (YTD) and off over 46% in the last 30 days as of Jun. 22. In the last year, an investor in Ethereum would have lost 44.5%. These figures are compiled by Coinmarketcap.com, as well as by Coinpaprika.com.

This makes Ethereum one of the largest deeply oversold cryptos. However, it’s likely the crypto could rebound. This is especially the case as the time approaches for the crypto to transition to a new transaction validation system. It will move from proof of work to proof of stake.

I also firmly believe that one of the main reasons that Ethereum has taken such a hit is its size. It is the second-largest crypto out there.

That makes it a deep source of liquidity for investors in cryptos, especially those who are “puking their positions,” as the phrase goes on Wall Street. That is when a hedge fund or long-short investor is forced to get rid of their position since it is wrecking their monthly performance — especially against stocks.

And of course, the opposite occurs when every one of these hedge funds, or long-short investors, has to come back in once the “trend is your friend” starts up on the upside. These investors realize that their performance has to include Ethereum to get out of their monthly drawdown, so they climb back on board. At that point, you could easily see a huge 20% or 30% move up in one day. That is why long-term investors try to take advantage of these downdraft days.

BNB (BNB-USD)

Binance (BNB-USD) logo displayed on a pile of altcoins. BNB price predictions.

Source: Robert Paternoster / Shutterstock.com

  • Market Cap:$35.2 billion

BNB (BNB-USD), the 5th-largest crypto, is off over 59% since the beginning of the year and over 33% in the past 30 days. Again, this is a very volatile performance. Once the market rebounds, this crypto is likely to stop being a source of cash for fearful investors or speculators. I explained how this works in the write-up above on Ethereum.

BNB is loosely connected to Binance, but its connection is not all that clear. For that reason, this crypto will never gain the following that Ethereum has, even though it is the 5th-largest crypto right now. Therefore, astute speculators won’t go overboard on this one.

Oversold Cryptos: Bitcoin (BTC-USD)

A concept image with the logo for Wrapped Bitcoin.

Source: Vladimir Kazakov / Shutterstock.com

  • Market Cap: $389.9 billion

Bitcoin (BTC-USD), the first and largest cryptocurrency, is off over 57.7% so far this year and down 31% in the last 30 days, according to Coinmarketcap.com. Moreover, Coinpaprika points out that its one-year performance is negative 39.39% as of Jun. 22.

This large crypto has a more stable following than Ethereum, despite its large cap size. That is partly because investors in Bitcoin tend to have low buy-in costs since it was the first crypto out there. Many people do not want to harvest long-term capital gains at a point where the crypto is on its knees. They would rather do it at a market peak.

Also, getting back in after selling is an emotional decision for Bitcoin holders. And frankly, it costs a lot of money. Granted, its price is still above $20,000, but to many investors — not so much to speculators — that is a lot of money.

I suspect that if Bitcoin crosses down below $20,000, you will see major buyers coming in on the institutional side. This seems to be a red line that many believe will not be crossed for long. That is why prudent speculators — again, if there is such a thing — are looking to dollar-cost-average now that it is close to $20,000.

Cardano (ADA-USD)

The Cardano (ADA) token with other gold and silver tokens in the background.

Source: Shutterstock

  • Market Cap: $33.75 billion

Cardano (ADA-USD) is the 7th-largest crypto, but its price is off 66% YTD. However, it is off just 11% in the last 30 days. One reason it may not have been sold off as much is investors are waiting for an upgrade to its smart contract abilities.

That will come in the form of a “fork” that is a split in the transaction validation software protocol that its staking validators have to follow. FXStreet recently wrote about this based on information from insiders. They said that the Vasil hard fork, in theory, is an upgrade that will boost the smart contract capabilities of Cardano and the blockchain’s smart contract platform Plutus. However, FXStreet reported that there is apparently a delay in the implementation of this fork.

Nevertheless, investors — and by this, I mean mainly speculators — may be waiting to see when this fork goes into operation and how it may help Cardano.

Oversold Cryptos: Solana (SOL-USD)

Solana Coin (SOL-USD) in front of the Solana logo. Solana price predictions.

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  • Market Cap: $12.18 billion

Solana (SOL-USD) is the 9th-largest cryptocurrency, but it is off over 80% YTD. In the last 30 days, it’s also down over 31.8%. This crypto is built on the Ethereum platform. That could be one reason why it is down so much.

Nevertheless, it still claims to have faster and cheaper validation performance than Ethereum. But in the last several months, Solana has had difficulties with platform shutdowns every month or two. That also may have influenced traders to dump this crypto so much.

But Solana is also the preferred blockchain protocol platform for non-fungible tokens (NFTs). And NFTs, sort of the tulip mania in the crypto universe, have been decimated. Along with that, Solana has fallen in popularity.

But again, prudent speculators will take advantage of this carnage in Solana’s price. Now may be a good time for them to begin accumulating the crypto. They surmise that when the tide turns, the action could be explosive in a very short period of time.

Dogecoin (DOGE-USD)

Concept art for Dogecoin (DOGE).

Source: Shutterstock

  • Market Cap: $8.5 billion

Dogecoin (DOGE-USD) is the 10th-largest crypto out there and is down 63% YTD. It is also off over 25% in the last 30 days. Nevertheless, Elon Musk affirmed his support of the Doge crypto in a recent interview with Yahoo! Finance.

On Jun. 21, he said that he is supporting the crypto “because people who are ‘not that wealthy’ asked him to do so.” Moreover, Yahoo! Finance stated:

“On Sunday, it jumped 8.5% in the span of 24 hours from near-record lows after Musk tweeted he’d keep supporting and buying the meme token amid a frenzied cryptocurrency sell-off.

Yahoo! Finance was also quick to point out that Musk once called it a “hustle” on Saturday Night Live. That was when the price was substantially higher than it is today a year ago on May 8, 2021. The price was around 33 cents then, off of a recent peak of 41 cents in anticipation of the appearance. Maybe investors should have sold then.

But now that Dogecoin is on its knees, another action can be taken. Prudent speculators may see another opportunity to take advantage of excessive pessimism on the crypto.

Oversold Cryptos: Shiba Inu (SHIB-USD)

Shiba Inu (SHIB-USD) or Shib coin standing centrally placed among bunch of crypto coins on blue background. Close-up, soft focus. Banner with golden Shiba token.

Source: salarko / Shutterstock.com

  • Market Cap: $5.38 billion

Shiba Inu (SHIB-USD) is the 15th-largest currency in the crypto world. However, the crypto is down 71.3% YTD and off 17.3% in the past 30 days.

This is a take-off of Dogecoin, another dog meme crypto. Shiba Inu is not as well known and has been just as volatile. No one should expect that Shiba Inu will rebound any time before Dogecoin and other major cryptos also rebound.

However, given how far it has fallen, it could have a much greater move up. That may move speculative investors to buy this digital currency as one of the oversold cryptos on this list.

On the date of publication, Mark Hake did not hold (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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/6-deeply-oversold-cryptos-worth-buying-right-now-as-they-are-likely-to-rebound/.

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