Top 3 Cryptocurrencies To Watch In 2022

Key ideas:

  • The crypto market saw $1.8 trillion wiped out during the extended crypto winter.

  • Regulatory risk, inflation, fears of a recession, and Fed monetary policy remain headwinds for cryptocurrency investors.

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  • A bottom would present investors with an opportunity to acquire Binance Coin (BNB), Bitcoin (BTC), and Solana (SOL) at depressed price levels.

It has been eight bearish months for bitcoin and the broader crypto market. At the end of 2021, the threat of a significant change in the regulatory landscape loomed over cryptocurrencies.

Governments around the world and even the International Monetary Fund (IMF) have called for a global regulatory framework.

This year, inflation, recession fears and a hawkish Fed have added further downward pressure.

To make matters worse, the market experienced its first cryptocurrency top ten crash. The collapses of TerraUSD (UST) and Terra LUNA have led to more calls for greater regulatory scrutiny.

From an all-time high of $3.009 billion in November, the total crypto market capitalization fell to a low of $1.082 billion in May before stabilizing. With the total market capitalization still down by $1.809 billion, opportunities are there for investors who can withstand the pressures of crypto trading.

We have chosen three cryptocurrencies for 2022.

These are bitcoin (BTC), Binance Coin (BNB) and Solana (SOL).

Bitcoin (BTC)

Bitcoin is the largest cryptocurrency by market capitalization and is attracting interest from retail and institutional investors. Significantly, bitcoin is not only the barometer of the crypto market, but also the most stable, backed by a loyal investor base commonly referred to as bitcoin whales.

Since hitting an all-time high of $68,979 on Nov. 10, bitcoin has fallen 62.5% to a year-to-date low of $25,836 before finding support. Year-to-date, bitcoin is down 21% to $29,680.

With bitcoin adoption gaining traction in several jurisdictions, bitcoin remains the target cryptocurrency for both seasoned and novice investors.

Technical indicators remain bearish for now.

Looking at the EMAs and the 4 hour candlestick chart (below), this is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $30,092. The 50 day pulled out of the 100 day EMA. The 100-day EMA remained stable against the 200-day EMA, neutral BTC.

A move into the 100-day EMA, currently at $30,301, and a bullish cross from the 50-day EMA to the 100-day EMA would signal a shift in sentiment.

BTCUSD 4 hours 040622

The daily candlestick chart confirms the current downtrend.

Bitcoin sits below the 50-day EMA, currently at $33,303. The 50-day EMA pulled back from the 100-day EMA, the 100-day EMA falling back from the 200-day EMA; Bitcoin negative.

A move through the 100-day EMA, currently at $36,660, could signal the end of crypto winter and a return to $50,000.

BTCUSD 040622 Daily Chart

Binance Coin (BNB)

Binance Coin is one of the top five cryptos, with a market capitalization of $48.8 billion, and is the native crypto of the Binance crypto exchange.

The world’s leading crypto exchange is in expansion mode at a time when other platforms are freezing or downsizing.

Recently, Binance obtained regulatory approval to offer its services in France, Italy, Dubai, Abu Dhabi, and Bahrain. With trading volumes dwarfing its competitors, the exchange and its native token will likely emerge stronger from the crypto winter.

Another interesting feature of Binance is BinanceChain, a community-based, open source and decentralized ecosystem. Binance Coin is the governance token.

BNB presents a value proposition for investors. From an all-time high of $693.73 on Nov. 10, BNB has fallen 70% to a year-to-date low on May 12 of $206.62.

Year-to-date, BNB is down 42% to $298.18 on June 3.

Technical indicators are bearish.

Looking at the EMAs and the 4 hour candlestick chart (below), this is a bearish signal. BNB is trading below the 50-day EMA, currently at $307. The 50 day pulled out of the 100 day EMA. The 100-day EMA retreated from the 200-day EMA; BNB negative.

A move to the 100-day EMA, currently at $311, and a bullish cross from the 50-day EMA to the 100-day EMA would signal a shift in sentiment.

BNBUSD 040622 4 hour chart

The daily candlestick chart confirms the current downtrend.

Binance Coin is trading below the 50-day EMA, currently at $338. The 50-day EMA pulled back from the 100-day EMA, the 100-day EMA falling back from the 200-day EMA; BNB negative.

A move through the 100-day EMA, currently at $368, could signal a near-term downtrend reversal and back to $400.

BNBUSD 040622 Daily Chart

Solana (SOL)

Solana is a top ten crypto by market cap, currently ranked ninth on CoinMarketCap, with a market cap of $12.78 billion.

SOL is the only Web3 in the top 3, although there are other competitors including Decentraland (MANA) and The Sandbox (SAND).

Low transaction fees and its established presence in the Web3 space make SOL a viable alternative to Ethereum (ETH). Moreover, an ecosystem with many new projects and demand from DeFi investors adds to the appeal of SOL.

As with the previous two cryptos, Solana has suffered heavy losses since its peak in 2021.

From an all-time high of $259.95 on November 6, Solana fell 86% to hit a year-to-date low on June 4 of $35.72.

Year-to-date, Solana is down 78% to $38.23 on June 3.

Technical indicators remain bearish for now.

Looking at the EMAs and the 4 hour candlestick chart (below), this is a bearish signal. SOL sits below the 50-day EMA, currently at $42. The 50 day pulled out of the 100 day EMA. The 100-day EMA retreated from the 200-day EMA; SOL negative.

A move into the 100-day EMA, currently at $47, and a bullish cross of the 50-day EMA through the 100-day EMA would signal a shift in sentiment.

SOLUSD 040622 4 hour chart

The daily candlestick chart confirms the current downtrend.

Solana is trading below the 50-day EMA, currently at $65. The 50-day EMA pulled back from the 100-day EMA, the 100-day EMA falling back from the 200-day EMA; SOL negative.

A move into the 100-day EMA, currently at $82, could signal a near-term downtrend reversal and back to $100.

SOLUSD 040622 Daily Chart

This article originally appeared on FX Empire

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Top 3 Cryptocurrencies To Watch In 2022


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