The crypto markets look heavy, so consider stacking these three strong altcoins amid potential downtrends.
- Ethereum (ETH)
- Terra (LUNA)
- Polygon (MATIC)
RECOMMENDED: ETHEREUM MERGE EXPECTED FALL 2022 SAYS ETH DEV
The first strong altcoin making this week’s list goes to the tried-and-true smart contract platform Ethereum (ETH). Ethereum is a great pick to stack throughout bearish time periods because, as its history suggests, it’s one of the only altcoins to survive and thrive following the return to a bullish market trajectory.
On top of its resiliency, Ethereum has an exciting year ahead with the highly-anticipated roll-out of its proof-of-stake upgrade, which is set to bring true scalability to the world’s largest blockchain.
At the time of writing, ETH is trading at $2,859.
Throughout 2021 and 2022, ETH has been holding this high time-frame (HTF) trend line as support. Now that the layer-1 (L1) blockchain looks to be approaching it once more, it could serve as a great buying opportunity assuming it can hold the line.
If ETH is to break through this HTF support, however, expect a turbulent ride as it searches for a new HTF bottom. On the bright side, this would mean each dollar spent will stack more ETH, which should be an attractive offer for long-term investors.
Next up on this week’s list of strong altcoins goes to Terra (LUNA). Terra has shown quite a bit of strength throughout the latter half of 2021 and this year. Despite most tokens struggling to even reach their previous all-time highs since Bitcoin topped in November 2021, Terra was actually one of the few coins to put in a new all-time high in March 2022.
Terra might be a great pick for bearish time periods because of its tokenomics — as more of its UST stablecoin is minted, an equivalent amount of LUNA gets burned, creating supply pressures on the blockchain’s native asset. As Terra bulls flock to stability in UST in case of a market-wide downtrend, LUNA could serve to hold up better than most as the supply gets drained.
At the time of writing, LUNA is trading at $88.91.
Since its inception in late 2020, LUNA has basically been going “up only” as it catches increasing demand from investors. While no altcoin can sustain such bullish trends forever, it’s a bad idea to ignore this kind of strength from an altcoin. WHile LUNA could easily flip bearish again, this trend could serve as an early indicator that it may be one of the strongest performers to make a comeback when the crypto markets turn bullish again.
RECOMMENDED: MARKET RESEARCH SHOWS POLYGON DOMINATING THE LAYER-2 RACE
The final strong altcoin on this week’s list goes to the Ethereum scaling solution Polygon (MATIC). As Ethereum has proven itself to be one of the strongest altcoins out there, it could be a good idea to have external exposure to it through bearish market cycles. Polygon is one of the best ways to gain exposure to ETH as it is dominating the layer-2 landscape. While plenty of Ethereum scaling solutions exist, their user bases pale in comparison to MATIC’s. If times get tougher in the cryptoverse, consider Polygon to add to your portfolio.
Additionally, Polygon is getting some real-world utility after its big partnership with the payments processor Stripe.
Introducing crypto payouts: https://t.co/xJnpLmsBKn. pic.twitter.com/PJQ2oTaU7J
— Stripe (@stripe) April 22, 2022
Stripe-supported platforms will now be able to tap into the Polygon blockchain to settle payments in USDC. While most other crypto projects like to partner up with each other, Polygon is one of the few projects partnering with revenue-generating companies.
At the time of writing, MATIC is trading at $1.30.
MATIC had a huge run-up in early 2021, so don’t be surprised if MATIC trends lower in the coming months — the current price action could merely be a long-term top forming on the weekly chart.
However, if the markets flip bullish again, there’s nothing stopping MATIC from catching another wave of adoption from new users adopting the latest in payment technology. Since we can’t predict the future of any market, dollar-cost averaging (DCA) is the best approach to take with MATIC and the rest of this week’s strong altcoins.