Throughout 2022, cryptocurrencies have been following a downward trend. Most cryptos have declined up to 90% from their all-time highs, and no end seems to be in sight.
With market dips happening almost every week, it can be hard to make one's way through and find the best or most profitable ones to invest in for considerable profits.
However, with the right amount of technical and fundamental analysis, it is possible to identify the ones with the most potential and jump in before the train leaves the station. Below are the top five cryptos for this week
Any list of the top cryptocurrencies to get in on will always include bitcoin. Bitcoin was created in 2009 and is the largest cryptocurrency in the world by market cap.
At the time of writing, bitcoin alone makes up about 39% of the global crypto market cap.
Recently, bitcoin has been oscillating between $18,000 and $23,000 as there was a massive sell-off in the crypto market. And while some people argue that the glory days are over for bitcoin, it is worth noting that over the last quarter of 2022, institutional interest in the crypto has grown considerably. Whales have been observed moving funds around in preparation for something big, and exchange-traded funds following bitcoin have begun to emerge.
If bitcoin holds above the $18,000 – $19,000 zone, we may see a rebound as bitcoin's price moves straight back up to touch the $23,000 zone and possibly break it upwards.
This is unsurprising as the second crypto to watch out for next week.
Recently, the Ethereum network underwent an event known as the 'merge,' marking the chain's move from a Proof-of-Work consensus to Proof-of-Stake.
While many expected the price of Ethereum to hit the $2000 mark before the merge happened, Ethereum hit the $1720 mark and then declined to the support level of around $1444, where it is currently consolidating.
The post-merge price of Ethereum remains to be seen, as it is quite possible that its price will rebound off this support level and rallies up to the $1800 – $2000 level this week.
Like Ethereum and Bitcoin, Solana also runs on its chain considerably faster than the other two. It also has considerably lower fees and faster transactions, making it one of the most popular blockchains in the world.
Naturally, whales have been observed flocking to the cryptocurrency and placing considerably large bets on its long and short-term future, and it isn't hard to understand why.
Currently, the entire crypto market is in a dip, leaving most of the prices of these coins at support levels. This counts as the best time to analyze and then buy the ones most likely to make a rebound.
Solana, for example, currently sits at its $32 support, waiting for the bears or bulls to take control. The support level for this altcoin currently sits at appears to be a strong one and may see the bulls having the upper hand over the bears in the coming week.
AVAX is the native cryptocurrency of the avalanche blockchain, yet another worthy competitor in the DeFi space.
AVAX currently sits at a support level of around $18 that has been tested repeatedly and has remained unbroken since late July. If the price of AVAX holds one more time, we might see a rebound upwards to the next resistance around the $21 – $23 zone. Especially if bitcoin takes the initiative and starts to trend upwards, pulling up all the others with it.
Last but certainly not least, we have the Binance coin or BNB.
BNB is one of the most popular cryptocurrencies on the market and is the native cryptocurrency of Binance, the largest crypto exchange in the world.
Last week, BNB declined from the $300 – $285 support and hit the next zone around the $275. this makes BNB's dip one of the easiest ones to get in on.
BNB is known for its favorable price action and for being relatively stable during market crashes. If this support around the $275 zone holds, prices could trend up to the $285 zone and even hit the $300 zone, bringing you a considerable profit if all goes well.
Investing in or trading cryptocurrencies is highly speculative and heavy with risk.
It is important to conduct proper research before putting hard-earned money into a market as volatile as crypto.
For every way there is to make money with cryptocurrencies, there are two more ways to lose it. Remember to do your own research (DYOR).
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)