Forecast from the Advisory Giant: Time to Sell DOGE, ETH and BTC?

Analysts from consulting giant Motley Fool have updated their investment strategy for DOGE, ETH and BTC in light of the latest market developments. Which ones are in the opportunity zone or should be divested? Dogecoin is on the red list at this point.

DOGE investors should think again, according to Motley Fool analysts

Until recent developments, Dogecoin (DOGE) underperformed its competitors. From a long-term perspective, it’s currently up a meager 1% over the year. The first red flag for DOGE, according to analysts, is “the absence of any growth catalysts.”

The first danger for Dogecoin is that there are no immediate plans to make any fundamental changes to the way its blockchain works. This limits any upside potential of the price. It also probably explains why the price of Dogecoin has barely moved this year. On the other hand, Shiba Inu kept himself updated with his new metaverse project and Shibarium. He even gave a date for the Shibarium Bridge today.

At the end of the day, Dogecoin offers little utility until it finds ways to improve itself. There’s a good reason you haven’t heard of “Dogecoin NFTs” or “Dogecoin decentralized applications.” The current Blockchain infrastructure does not support them.

Also, Dogecoin has no plans to switch to a PoS mechanism. Ethereum followed this step last year and became a next-generation blockchain.

Elon Musk factor

Second, Dogecoin fails to capitalize on its well-known relationship with billionaire Elon Musk. In the past, a playful tweet from Musk was enough to raise the price of Dogecoin. But this year, Musk had to work hard and hard to get everyone to notice. He wore a Dogecoin T-shirt to the Super Bowl. Dogecoin briefly replaced the iconic Twitter bird logo for the dog mascot. However, these were not enough to ensure a lasting trend.

Still, Elon Musk’s appearance in his new super app X may open up new opportunities. As we reported as Kriptokoin.com, some experts predict that Dogecoin will serve as a payment method on the new platform.

Citing negative factors such as poor technology, lack of hype and volatile price movements, Fool analyst Dominic Basulto said, “Is now a good time to sell DOGE? He answers the question as follows:

Given all this, I think it’s time to give up on Dogecoin. It’s a real shame, because it’s probably one of the most extraordinary financial assets ever created. But at some point, it’s time to face reality. There are so many simple steps that Dogecoin can take to increase the value of the coin, such as introducing a coin burn mechanism to reduce the total circulating supply. But it didn’t. If you’ve been waiting for Elon Musk to raise the price of Dogecoin, it may be too late.

DOGE on the red list: So, is it time to sell Bitcoin?

Bitcoin (BTC) seemed poised for a strong recovery in the first half of 2023. It recorded an 83% price increase in six months. However, no one is excited about a 4% price drop since the beginning of July.

The idea of ​​giving up Bitcoin because of this congestion is more common than ever? The weak chart shows that some Bitcoin investors are doing exactly that. However, analysts recommend thinking twice before selling BTC right now. At this point, analyst Anders Bylund shared that he bought solid Ethereum, Polkadot and some Bitcoin last week. Analsit plans to buy more of these three crypto names in August.

Bitcoin’s chart can be a useful tool and an important indicator. However, it is far from being a definitive authority on its future performance. The truth is, Bitcoin’s trajectory has always been volatile. The overall price trend was strongly positive over the long term. In summary, you never know exactly where Bitcoin will go next. At the same time, the essential qualifiers that raise it to $29,200 aren’t going away. Therefore, analysts draw attention to the bullish catalysts that investors are eagerly waiting for.

Bitcoin prepares to price these catalysts

halving

There are several real-world events on the horizon that could rekindle Bitcoin’s growth. The next halving, currently scheduled for April 2024, is among the highlights. This process halves the Bitcoin mining reward roughly every four years. Since it becomes harder to earn Bitcoin during the mining process, the move often leads to an increase in Bitcoin’s price.

ETH applications

Also, giant investment companies like BlackRock, WisdomTree, and Invesco are trying to launch exchange-traded funds that track Bitcoin’s spot market value. If successful, these familiar investor tools could open the doors to institutional investors putting real money into the cryptocurrency industry.

The U.S. Securities and Exchange Commission (SEC) isn’t making this game-changing idea any easier, turning down every exchange-traded fund (ETF) application and appeal so far. But things could change when financial elephants like BlackRock turn to the Bitcoin ETF proposition. This crypto newcomer knows how to play the regulatory game.

Price predictions for BTC

Bitcoin doesn’t have record prices these days. But people are using it for real-world transactions more than ever before. The number of daily Bitcoin transactions set a new record in May 2023. He never stepped back from this level. Two months later, the daily trading volume still puts the old record (as of January 2018) to shame.

The dollar value of these transactions is relatively small compared to previous peaks. Still, the plentiful transaction volume indicates that Bitcoin-based DeFi applications may eventually gain traction. The arrival of blockchain-based financial instruments in the hands of everyday consumers will be the biggest game-changing thing.

Along with the above, analysts say for an ideal investment strategy:

That’s why I think it’s a bad idea to move away from Bitcoin right now. Crypto’s grandfather has many potential catalysts for future price increases, and it would be a shame to miss the next big bull run. I can’t promise that the 2017 or 2021 fluctuations and each halving will be replicated as a replica of a different market environment, but I can see the writing on the wall.

Is Ethereum a good choice for the long run?

Since hitting an intra-year high near $2,140 in mid-April, Ethereum price has tumbled by about 13%. It is currently trading at over $1,850. Analysts list two catalysts for buying bottom prices.

Impact of blockchain upgrades

The first is the potential impact that recent Blockchain upgrades may have on the future price of Ethereum. In April, Ethereum completed its first major blockchain upgrade since Merge last September. Known as Shapella (a combination of the words “Shanghai” and “capella”), this upgrade addressed a major issue for Ethereum users: the inability to withdraw staked crypto funds.

Until this change was made, the future of staking on Ethereum was at stake. Judging by the amount of Ethereum staked in the last three months, staking has been a huge success. This is exactly the type of Blockchain upgrade I’ve been looking for as a long-term investor.

market dominance

Another factor to keep in mind is Ethereum’s continued importance in key segments of the Blockchain world. There are two areas of particular concern: NFTs and DeFi. In both areas, Ethereum’s dominance is indisputable.

First, let’s look at the NFT sector. While other networks have had some success with NFTs, no one has yet equaled the popularity of Ethereum’s top NFT collections like the Bored Ape Yacht Club. All 20 of the world’s most valuable NFT collections are on Ethereum and Bored Apes currently ranks #1. Also, Ethereum is still the clear leader when it comes to overall NFT sales volume.

It’s pretty much the same story in the DeFi industry. Ethereum accounts for 58% of the locked total value (TVL), an important metric for determining total DeFi strength. The term refers to the total amount of crypto funds “locked” in various DeFi protocols. As a general rule, the higher the TVL count, the better. Ethereum is #1 here and not even close. Ethereum’s total TVL is $25 billion, while its closest competitor’s TVL is only $5.5 billion.

What will happen next for Ethereum?

To the last and most important question, Fool analyst Dominic Basulto’s answer was quite clear. The analyst expresses his long-term expectations as follows:

Keep in mind that while there is definitely a long-term case to buy the dip with Ethereum right now, there is no guarantee that there will be a sharp upward trajectory in 2023. In fact, some analysts want Ethereum to drop that much. We could see $1,000 if the SEC decides to intensify its crypto pressure. So there is definitely a high degree of risk and volatility in Ethereum.