A crypto chart manager shares 3 charts showing how big the Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) bubble can grow, and 3 altcoin projects that can transform digital payments.
Is the crypto market in a bubble?
Winter seems to be finally coming to an end, both in the Northern Hemisphere and in the cryptocurrency market. In late January, crypto chart maker Forrest Przybysz couldn’t put aside the possibility of a crypto winter, a bear market where enthusiasm and investment for crypto companies and tokens dried up. While the founder and CEO of crypto graphics software company CryptoStackers still can’t prevent a downturn, he states that interest is growing again.
Bitcoin, the largest token by market cap, is now up 22% from its mid-March lows. The original cryptocurrency is often seen as a barometer for smaller cryptos. Of course, top altcoins like Ethereum and Solana rose 31% and 55% respectively during this time. In terms of context, Bitcoin and Ethereum are still 30% off from their all-time highs, while Solana is 53% off.
Crypto skeptics are warning that such wild volatility is a sign of a bubble. And, perhaps surprisingly, Forrest Przybysz agrees. The former director of crypto research at Token Metrics says in an interview that digital tokens are in a bubble, just like last fall. Przybysz expresses his thought thus:
I think the market is very, very speculative right now. I liken it to the dot-com explosion.
Three cryptos the analyst is bullish on: BTC, ETH and Solana
If Przybysz is right to believe that history repeats itself as a crypto purge, causing many tokens to disappear while the lucky few survive and thrive, then The multi-billion dollar question is: Which cryptos will be the winners? It’s impossible to know, but many believe today’s biggest crypto players will be leaders in the future rather than being displaced like Yahoo and AOL.
While Przybysz is bullish on a relatively unproven altcoin trio, the three widely followed cryptos he chose to discuss are Bitcoin, Ethereum, and Solana. Charts are especially useful for analyzing cryptos, as traditional valuation measures like the price-earnings ratio used for stocks do not apply to digital assets. This makes cryptos both difficult to value and highly volatile.
Bitcoin has not hit the highs Przybysz once predicted, but the technical analyst still seems pretty right in his prediction for the token. Its price dropped to just over $35,000 in late January. It’s right on the edge of what Przybysz calls the ‘bubble zone’. And the crypto remained neatly in the $30,000 to high $40,000 range as he predicted.
The analyst adds that he personally ‘aggressively’ bought Bitcoin dips in the first few months of 2022. Przybysz’s current outlook for Bitcoin is rosy as investors believe it will continue to distance itself from the US dollar with inflation at a 40-year high. While the leading crypto has yet to function as an inflation hedge, Przybysz thinks that may change. In both cases, the analyst says that Bitcoin is undervalued and can continue to run, noting the following levels:
We broke the big $46,000 resistance. And here I expect some cuts, possibly between $45,000 and $53,000, in the near term, giving both sides an extra $1,000. But our levels are currently $46,000 and $52,000. $49,000 is also a major resistance level.
Przybysz predicts that if Ethereum can maintain its positive momentum, it could rise from $3,400 and reach an overextension target of $5,200 and $7,000. The analyst says that a network update for the crypto called ‘Ethereum 2.0’ will reduce supply and could push the token into the $5,000 to $10,000 range in the long run.
According to Przybysz’s charts, Solana, which fans have labeled as the ‘Ethereum killer’ due to its low fees, could rise from $125 to $220 or $294. Bottoms below $100 can be bought, according to the analyst.
3 altcoins that could revolutionize global payments
Contrary to popular belief, not all cryptocurrencies are effective payment mechanisms. For example, Bitcoin’s volatility and fees, which hit over $60 per transaction last year, make crypto less effective for sending money than some of its competitors, according to YCharts. Przybysz shares three altcoin projects he thinks have the potential to transform the global payments system plagued by high fees and long wait times for transactions: Nano (XNO), Ripple (XRP) and Stellar (XLM).
Among these altcoins, Przybysz says Nano is by far his favorite project. The analyst shares his assessments for each altcoin.
Nano (XNO)
I’ve probably mentioned this before: I’m betting big on the Nano where the price action is terrible. However, they are quietly building an FX solution where they reduce remittance confirmation times to one to three seconds. So instead of having one to three days of counterparty risk, imagine being able to securely settle cross-border payments in one to three seconds. I think this will be huge.
Ripple (XRP)
I don’t own XRP because I don’t like its distribution. I think it’s super central. They only own 60%. Ripple Labs owns over 50% of the tokens. Nano is developing a solution for the FX market that can essentially do what XRP can do.
Stellar (XLM)
I think it’s worth considering. This is something I’ll dive into a lot. If I hadn’t bought Nano this much, I would consider another cryptocurrency that gives me some sort of buy into decentralized Blockchain based solution for FX. Because I believe this is a serious issue where Blockchain technology is very valid.
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