Bitcoin’s performance has tended to dictate the best cryptos to buy. That has been the case during the whole lifespan of the crypto market. Even almost dead coins get resurrected when BTC goes on a bull run. We’ve also seen strong coins go to nearly zero while BTC’s market sentiment drops.
As long as BTC remains the world’s largest crypto, it will continue dragging other cryptos.
The good news is that BTC has been very positive lately. This has once again awakened other cryptos. That doesn’t mean you can invest in any crypto project and let BTC do all the heavy lifting. There are better cryptos to buy than others.
Selecting the future winners to ride the up-wave with BTC involves:
- Identifying real-world adoption and utility
- Noting their funding and successes so far
- Future releases, developments and announcements – preferably ones they have marked on a calendar!
Fantom (FTM-USD)
Fantom (FTM-USD) is a layer 1 blockchain provider and a rival to Ethereum (ETH-USD). According to their website, hundreds of decentralized apps use Fantom for their services, including DeFi, NFT, and GameFi dApps.
FTM spiked on the news about Sonic — Fantom’s upcoming “sister” chain — providing 180M daily transactions capacity. This news coincided with FTM outperforming all other top 100 altcoins that week.
The Sonic Foundation’s development was backed buy a $10M funding first round, spearheaded by Korean crypto fund Hashed.
FTM appears to be sitting on long term support at $0.80 as it consolidates the recent spike. An entry with a small stop loss could be a good position. A break upward could see FTM spike to $2.
Whatever the technicals, the sound fundamentals are something to watch. Pat attention to how FTM performs in the weeks and months after Sonic’s release. The launch is expected in late summer.
Chainlink (LINK-USD)
Chainlink (LINK-USD) is a decentralized framework that connects off-chain data to smart contracts. This is done through “oracles” or “middleware.”
These Decentralized Oracle Networks (DONs) enable Price Feeds, Proof of Reserve and web API connections.
LINK had a big pump after the results of the recent partnerships with the DTCC were released. Large traditional finance (TradFi) institutions have also partnered with LINK’s blockchain protocol, giving mainstream legitimacy in speculator’s eyes.
LINK is currently forming a head and shoulders pattern on the technical charts. But encouragingly, a break of support at $13 has been thoroughly rejected, giving bullish signals. If it can retest the significant resistance around $20, then it may turn into a full upward breakout.
For the moment, though, this should be treated as a long-term play. Bitcoin and the wider crypto market’s sentiments will have the biggest hand in determining which way LINK goes. It is one of the more promising cryptos to buy if markets go its way.
Solana (SOL-USD)
Solana (SOL-USD) was a hot crypto out of the block. It’s a versatile blockchain that supports DeFi and NFT marketplaces.
SOL pumped on the news of an upgrade designed to solve Solana’s suggestion issues once after years of problems.
Solana’s Fantom wallet has also climbed various app stores, including Apple’s. This means more user downloads. More users are coming into the network.
What is encouraging is how SOL is forming a cap and handle formation very similar to many other cryptos in recent weeks. This looks like a breakout pattern for SOL and the wider crypto market.
As always, watch what the wider crypto market does. Particularly Bitcoin. Bitcoin’s performance will likely drag the rest of the crypto market with it. At least, that’s how the crypto market has behaved for the past decade and more.
If the breakout occurs, SOL’s target could be as much as $350. That’s more than double its current price as of this writing. Of all the altcoins, SOL is one of the safer cryptos to buy. So as mainstream as SOL is getting, it will “graduate” from altcoin status.
On the date of publication, Sam Farnham 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.
