Investing in the Mid-Long Term
UPDATE: All of these reached invalidation levels and positions were exited.
If you've been following me on Twitter (if you're not, make sure you do here) you'll have seen I've been posting some of my top altcoin picks for the mid to long term. I revealed the first nine on Twitter but I've saved the final reveal and updated summary for here. I've mainly stuck to one daily chart per coin to make this more digestible but be sure to check out my Twitter feed for more detailed charts.
These are the coins that I think are the best balance of low risk combined with massive upside going forward. However, as you saw in my Bitcoin Market Update the cryptocurrency market is in a pretty tenuous position. I don't advise most people to take up positions in these coins without letting the market pick a direction first as the reality is there could be more downside on the horizon. However, it's my belief that many altcoins have either hit bottom or close enough to bottom that I'm comfortable taking up small positions in them while having levels in mind where I would cut that position. In summary, you may want to wait on picking these up until the market is clearer but if you want to add some now I've provided some guidelines on entries and where to consider letting go. However, these are my own personal picks and this is not financial advice. Without further ado and in no particular order...
ARK is an obvious pick for me. For the fundamentals, you already know all about it from my review but the renewed focus on push-button blockchain solutions along with the upcoming release of ARK Core V2 makes me even more optimistic on it's future. The passive income from dPOS staking also don't hurt and makes sitting on it during a weak market much easier. Now let's take a quick look at TA for ARK - you can see my previous, more in-depth analysis here.
ARK is sitting in a major support region between 9k-12k sats and has held there for the past couple months. Despite price remaining fairly flat, momentum is building as evidenced by the increasing RSI which broke through the key level of 50. Stoch RSI has crossed to the upside suggesting upward momentum as well. The only thing holding ARK down right now is the 50 day moving average and a strong close above that should set it off. It's a safe buy anywhere in this zone but best plays are to wait for it to close above the 50 day moving average or buy on a pullback to 10k sats.
On the weekly time frame , ARK is again sitting in a major support range. RSI is building and the Stoch RSI has crossed upwards and breaking out of the oversold region; look what happened the last few times the Stoch RSI crossed up, this is incredibly bullish.
Entry: anytime is fine, but ideal is on close above 50 day moving average or as close to 10k sats as possible
Stop-loss: If ARK closes convincingly under 9k sats, look to sell and potentially rebuy around 5k sats
Overall, ARK has a fantastic TA setup and FA to back it up. Unless we get a breakdown from 9k sats I'm happy to hold onto my ARK bags and generate passive income while waiting for it to make a splash.
You can buy ARK at Binance.com
2) Stellar Lumens (XLM)
Stellar is another that's just such an obvious pick. You've already seen my review (Stellar: Powering Global Payment Solutions), but the partnerships with IBM and others cannot be overlooked and there's major ongoing developments including the Lightning Network, Stellar DEX and it's evolution as an ICO platform. In case you haven't heard, it's also likely to be listed on Coinbase this year which should have a considerable impact on price. From a technical analysis standpoint it looks great as well.
XLM has bounced from the major support box in green and proceeded to briefly break out of the bull pennant it's been forming since early in the year. It's now back inside but all the critical moving averages are below it as support, RSI is holding above 50 and the Stoch RSI is crossing up. What does all this mean? It looks like a breakout is imminent to me and with all the support below it's a low risk setup. The weekly (not shown) paints a similar picture though suggests there might be a slight pullback first but as long as the 2.9k-3.0k sat support range holds there's little to worry about and I doubt it goes below the moving averages clustered around 3.5k sats.
Entry: Now is fine if you have a conservative stop-loss, otherwise wait for a break out of pennant. If it doesn't break out, buy in the 3-3.5k sat range
Stop-loss: If buying now, a conservative stop-loss would be below the daily moving averages; a more generous stop-loss or if you already hold some would be below 2.9-3k sats
I definitely see Stellar Lumens making a new all time high in the not so distant future and the FA makes this a no brainer hold.
You can buy XLM at Binance.com
3) Nav Coin (NAV)
NAV is another long-time favorite as you'll know from my review (Nav Coin: The Everyday Privacy Coin). It's been around since 2014 and the team continue to be as active as ever and that gives me confidence this is a cryptocurrency that will survive the test of time. It also has major upcoming milestones including Lightning Network, the Kauri Wallet which will support multiple currencies and atomic swaps, the first Nav Coin ATM, NAVTech 2.0 and NAVMorph. The community fund is also getting up and running which should make things progress a little faster. Lastly, it also offers POS for some passive income and is working on implementing cold staking to make it even easier. On the TA front, NAV offers a great setup and has a history of making massive runs.
NAV bounced from a long-term support region down near 4k sats and is now consolidating above another significant support region, with support from the moving averages directly below. RSI has stayed strong during this consolidation and the Stoch RSI is in the process of bottoming out - once this crosses upward I expect NAV will make another big move.
As I said before, Nav Coin has a history of making big moves and moves in cycles. The price action over the past few months definitely looks like a set up for the next cycle and the previous ones have resulted in bigger and bigger moves; the last three were 390%, 588% and 635%! I'm not saying NAV will have that big of a move but even if it went back to all-time high from it's recent bottom around 4k sats, that would be 1079%. I dive a bit deeper into this hopium in this tweet thread if you want to read more.
Entry: Consider buying around 5k sats if you're willing to watch the charts or use a stop-loss, otherwise wait for a confirmed move up or a bigger pullback
Stop-loss: If buying now, exit below the 50 day moving average
I like the fundamentals of NAV and the TA looks great to me which is why it's on this list.
You can buy NAV at Binance.com
4) TomoChain (TOMO)
TOMO is a smaller cap cryptocurrency that is often called the Ethereum of Vietnam and is definitely a serious competitor. TOMO is led by Long Vuong, former NEM project lead and it has already established a number of partnerships including TE-Food, Midas Protocol and many more. There's a lot of catalysts coming up with main net, masternodes and test net sharding all expected to launch by end of year. Let's look at the technical analysis for TOMO.
Now when I posted about TOMO on Twitter, it was sitting and consolidating in the green box highlighted above. Since then it's gone on an absolute tear and has more than doubled in it's value versus Bitcoin. For those that got in, congratulations. I'm now out of my TOMO position for now and I've cautioned anyone from FOMOing in here as TomoChain has hit significant resistance. If it breaks above this resistance that's a better time to buy in, especially on a pullback. Ideally TOMO comes down to retest the 5.5-6k sat region which would make for a great entry though with all the hype around it we'll just have to wait and see.
Entry: As stated, I wouldn't enter here. Wait for a break of this resistance or look for a pullback and bounce in the 5.5-6k sat region
Exit: If you already hold some and don't want to take profit here, I'd just hold onto it
TOMO is a strong project and still undervalued. Hype around it is building and the upcoming main net will only add to that. Overall, it's a great project for any cryptocurrency portfolio.
You can buy TOMO at Kucoin.com
5) Basic Attention Token (BAT)
Another altcoin you've hopefully read my review on (Basic Attention Token: A New Digital Advertising Model) has one of the strongest use cases out there including it's integration with the Brave browser. The token model makes sense and the project is led by Brendan Eich which leaves me with a lot of confidence in it. Moving on to technical analysis.
BAT broke out of a big descending wedge which resolved right at a major support region between 2.2-2.4k sats and has continued to consolidate above that zone. The 50 day moving average is holding it back right now and there's a resistance zone starting around 3-3.2k sats ahead so this may not be one that makes a big move right away. However, looking beyond the immediate future BAT looks primed to re-test recent highs around 6k sats and I bet we see a new all time high in 2019.
Entry: Most conservative approach is to wait for it to break above the red resistance zone but I will likely look to enter on a re-test of the green box or a close above the 50 day moving average Exit: Will depend on where you enter; if you have some now a break below 2.2k sats would make me reconsider my position
Basic Attention Token has a working product, top end fundamentals and the technical analysis looks great.
You can buy BAT at Binance.com
6) Binance Coin (BNB)
BNB is the exchange token for Binance, the world's largest cryptocurrency exchange. It has been one of the most stable altcoins in 2018 and has a strong, simple use case, offering holders discounted trading fees and other benefits. Lastly, it's acted as a great hedge to Bitcoin as it tends to surge up when Bitcoin and the general market trends down. On the technical analysis front, the risk/reward here is great.
BNB has held the green support box for pretty much the entirety of 2018 and had a big run up May-June while the rest of the crypto market was tanking. It has now broken above this zone and is re-testing it and the 50 day moving average. Holding above these two is a great sign and I expect it to consolidate for a while before making a bigger move up.
Entry: This re-test of the 50 day moving average and support region is actually a great setup; if you're unsure you can hope for it to go back down to the green box or wait for it to move above the other moving averages
Stop-loss: If it convincingly moves below the green box, it's a long way down and I'd definitely exit
BNB has a clear use case, is linked to the world's most successful crypto exchange and has been a strong hedge against the cryptocurrency market so it's definitely in my portfolio.
You can buy BNB at Binance.com
7) Zilliqa (ZIL)
Zilliqa is an incredibly fast, truly scalable blockchain platform which addresses one of the biggest issues facing blockchain today. The team is stellar and filled with PhD's, there's numerous partnerships and almost every venture capital firm involved in crypto has ZIL in their portfolio. Can't ask for much better than that and the technical analysis offers a great risk/reward setup as well.
ZIL has been consolidating in this support range since September and has started to move above it recently. Stoch RSI and RSI both show significant momentum to the upside and ZIL is just being held down by the 50 day moving average and the 0.886 retracement level around 600 sats. Breaking above these two levels should set it up for a big move and this is definitely a coin I could see finding new all-time highs in 2019.
Entry: Now or on re-test of green support range in the 500-550 sat range would be the aggressive approach or you can wait for it to close above the 50 day moving average and 600 sat level
Stop-loss: Unless ZIL broke 500 sats convincingly I'd sit tight on this one
Summing up Zilliqa we've got project that is solving a real need with awesome fundamentals and one of the best risk/reward setups out there.
You can buy ZIL at Binance.com
8) Monero (XMR)
Monero is the longstanding king of privacy cryptocurrencies and has arguably been the only crypto to stay relevant for as long as Bitcoin. Privacy coins should be a part of every cryptocurrency investor's portfolio and Monero is the safest bet as I have little doubt it will continue to be one of the major cryptos for a long time to come. I don't love the short-term technical analysis for Monero but long-term I'm a big fan.
Monero had a nice bounce from a minor support zone recently and didn't make it all the way down to the major support indicated by the large green box. It has since been consolidating but Stoch RSI has moved towards bottom, RSI is trending down and broke 50 and so far there's no sign of it breaking to the upside. Ideally I'd like to see it re-test the smaller green box for a double bottom, though right now the 50 day moving average is holding it up. There's resistance overhead around 0.025 BTC which will likely keep it down in the mid-term but again, this is another one I see making new highs in 2019 even if the short-term outlook isn't fantastic.
Entry: There's a low risk entry now with a stop below the 50 day moving average but I'd wait either for a strong move up or a re-test of the smaller green box in the 0.0145-0.0150 range
Exit: If you're in XMR now, I'd consider an exit under the 50 day moving average
Monero is the privacy king and isn't going anywhere. Long-term this is a no brainer.
You can buy XMR at Binance.com
9) Icon (ICX)
ICON is a Korean based project focusing on blockchain interoperability and is often referred to as the Korean Ethereum. The team is strong, they have one of the most extensive networks of partnerships including banks, universities, hospitals and tech companies such as Samsung Mobile and Loopchain and Chain ID are in use today by many of them. There's been some negative press lately around the token swap delay but with the staking protocol coming up in the near future I think ICX will be in the spotlight again soon. What does technical analysis have to say about Icon?
ICX, like many of the altcoins on this list, is sitting in a major support region after doing a full retrace from all time highs. Icon was heavily oversold and is now starting to show some upward momentum and is just being held down by the 50 day moving average. The first serious resistance ICX encounter (though there will be minor ones along the way) is in the 2.5-3k sat region which is 2.5-3x the current price so it offers a great risk/reward in the mid-term, and long-term this could re-test highs.
Entry: Now or on a daily close above the 50 day moving average
Stop-loss: A conservative stop would be below 900 sats
Overall ICX offers the right blend of hype, upcoming catalysts, use case and the technical analysis offers fantastic risk/reward right now.
You can buy ICON on Binance.com
10) Power Ledger (POWR)
Power Ledger is one of those few blockchain projects that has a clear real-life use case, strong tokenomics and is actually being used today in a major way. I cover all this in my review (Power Ledger: Reinventing Energy Networks) so make sure to check that out if you haven't already. The team is fantastic, partnerships are extensive and active, and there's major catalysts upcoming such as asset germination events. Lastly, the technical analysis on POWR looks great.
POWR was heavily sold off while the market was declining but eventually found a local bottom. Since then, it posted a brief bounce followed by a period of consolidation in the green box forming what is often knowing as an Adam and Eve bottom which is very promising. Over the past few days, the RSI has ramped up, the Stoch RSI has crossed to the upside and it has broken out of this consolidation zone and is, as of now, sitting above the 50 day moving average offering a great setup. Risk/reward is fantastic here as well as POWR is near all-time lows with tremendous upside.
Entry: Buy if it can hold above the 50 day moving average for a couple days, or if that doesn't hold look to buy in green zone
Stop-loss: Conservative stop is below green support region (sub 2.4k sats) or a more lenient stop would be if it set new lows (sub 2k sats)
Renewable energy is going to be a massive industry going forward and Power Ledger is going to be a leading player from a blockchain perspective. I like the team and tokenomics and the technical analysis setup is great.
You can buy POWR at Binance.com
There's a lot of altcoins that I debated including in this list but the top contenders were as follows:
WanChain (WAN) - one of the most hyped projects earlier in the year and had a strong run before crashing hard. I expect this one to rebound strong.
Aion (AION) - Not my favorite project from a fundamentals standpoint but the technical analysis setup looks amazing and they do have an extensive network of partnerships.
Both of these can also be bought at Binance.com. There were a number of small cap and micro cap project that are definitely on my list but should occupy a smaller portion of your portfolio - keep an eye out for an upcoming article on some of my favorite small cap altcoins.
I believe these ten altcoins are low-risk cryptos that are fundamentally sound and are poised for big things, both price-wise and technologically, in the coming year. In addition to your majors and a small allocation of small caps, I think these are great inclusions for anyone's crypto portfolio.
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