Potential of 5x- 20x gain in the future
One of my favorite strategy to multiply your asset is by doing the Dollar Cost Averaging. Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset’s price and at regular intervals. In effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices. Dollar-cost averaging is also known as the constant dollar plan.
In other word, if we are talking about the Dollar Cost Averaging, it’s not about the time frame of 1 day, 1 week or 1 month. This is the long term strategy which the time frame can’t be defined. We can assume the potential years to come for the first take profit. It seems long enough but believe me, the results will be very fantastic.
Now, we are talking about cryptocurrency space which we know that in the last few years has became the hype and this year, the price of bitcoin which I always see as the mother of all coins has surged to breaks its All Time High. Like what every asset’s behavior, alternative coins are also having the specific behavior that is following the movement of the bitcoin. This thing has made the price of most altcoins surged to the upside too. During current condition, there occurs an important question of what coins that is still worth to collect with the strategy of DCA? Here in this article, I’ll try to cover the answer of this question.
First of all, you must read my previous article about the 3 scenarios of potential bitcoin’s movement in the future or simply open this link for further details, 3 scenarios for Bitcoin
We know that the price of most altcoins have surged to the upside and may people have said that the altcoins season is already here. However, I have my own opinion which the altcoins season hasn’t even started yet. The reason is very simple, the BTC pair in the altcoins market is still at a very low price and is still very undervalued.
Like you know, when the previous altcoins season occurred there is 1 characteristic that was very clear to represent the altcoins season which both BTC and USD pair had similar upside push and none of them are in the bottom level as well. While at current structure, I see that the increase of the altcoins’ price in USD value is because of the hype of following the price of Bitcoin and none of them are natural except the DeFi coins.
So, with the assumption of base case scenario in Bitcoin occurs in the near future, I would like to see these 8 coins below as a gem for us to do the DCA strategy.
As you know, Ripple always be the first choice in our portfolio and currently has the bigger exposure on our portfolio as well. Latest news about SEC lawsuit that has occurred in the last 2 months is no more than a drama for me. I always see the technical perspective as my first consideration for taking any position even it is for the scalping or swing purpose.
With the price of XRP/BTC is now at around 0.00001050 BTC there is no doubt that the price is now trending at a very low level and super oversold as well. Also, there is still the support holding well as a significant one. While the XRP/USD value is now trending slightly below the point of interest around $0.65 region which will become the validation of the bulls to flip this whole market.
With the assumption of the price of the BTC trending at the base case of around $35000 and the price of the XRP/BTC pair reaches 0.0001 BTC as the point of interest, the USD value must be around $3.5 region which is also the previous ATH which makes this as the confluence zone to touch in the future. Coincidence?
My second biggest exposure in my portfolio is Ethereum. There’s no doubt why I chose this coins and I have simply done the DCA strategy of this coins since the end of 2018. This coin simply is the biggest adoption in the cryptocurrency sphere with its ERC 20 platform to accommodate a lot of token as well.
From the perspective of technical side, it’s no doubt that the price on the ETH/BTC has trended at its low for a long time and the price is now forming a Inverted Head and Shoulders pattern which becomes my favorite pattern for the reversal pattern. We may see a possible movement toward the blue region first as the action of liquidate the early buyers that is entering with FOMO in the market but still, there is the potential of upside surge to the 0.085 BTC region at the future.
ETH/USD pair is now trending at the 1.1 Fibonacci Extension level which simply is the previous All Time High region. A short term pullback is expected to enter first initial capital for DCA.
For the target, I’ll simply see the $3000 as the minimum value to reach. However, it can go much higher than this target as the valuation of ETH is moving in alignment with the Bitcoin’s hype.
Tron is another favorite coin which brought a huge different in the cryptocurrency industry back at 2017 which its uses to bring support to Big Data and the acquisition of the BitTorrent was another big deal for the company. The Exodus and the Odyssey were also a good deal. But, the best deal of having this coin is their CEO, Justin Sun who has an ability to make his company becomes one of the most visionary company as well.
From the perspective of technical, The price of TRX/BTC is now trending below the black resistance trend line which has been forming since the 2018 and the price is now trending closer at the blue region of support which is the All Time Low. Any breaks above this black resistance trend line will becomes a winning bet for us as the TRX’s holders which give the validation of the price to go higher. My conservative target for long term is at around 0.00000830 BTC which equivalent to around $0.3 ($35000/BTC assumption).
My 20x bet is on EOS. It simply is more scalable in value than Ethereum as well. I see EOS with its dAPPs can becomes the second choice beside Ethereum for more scalable options.
From the technical perspective, the EOS/BTC value is now trending at the blue region which is the All Time Low region as well. With current oversold indication, we can see a bounce of this support in the near future and can bring the price to higher structure to 0.0011500 BTC of value as the conservative target and 0.0019000 BTC as the aggressive target in the future.
From the EOS/USD, we have just seen a break out of the black resistance trend line which will give more momentum to the upside in the future. If I assume the 2017’s hype as the wave 1 in higher degree, the wave 3 might be at the 1.618 Fibonacci Extension minimum (around $38) while we can still expect an ideal target to the 2.618 Fibonacci Extension (around $61).
Stellar is another coin which I really appreciate as it has the similarity with the Ripple on its function and purpose. The only thing that makes different between these 2 coins is their customers which Ripple is more focusing on the financial institutions and big company while Stellar is more focusing on the individuals.
The technical perspective of XLM/BTC shows us that the coin is now trending at a very bottom of its structure since the first they launch their coin. I can expect a bounce in near future to the higher region as the price is trending at the blue region which was the strongest turning point at 2017. If this occurs and being valid, we can see price to test the .382 Fibonacci level and the ideal target will be at 0.00004200 BTC as the ideal target.
In USD value, we can expect the target of the $1.4 as the minimum target. With its current movement which breaks the blue region as the pivot point, this target remains conservative.
I’m not really seeing the fundamental factor of this coin that’s why I prefer to add less exposure of my total portfolio to this coin. But, if you study the technical analysis deeply, you’ll realize that accumulating this coin at this region will produce you with a small risk.
XMR/BTC is now trending at a very low point with a touch a the black support trend line which is the major support for current cycle. With the touched of this support trend line, the price has shown us a wick toward the downside as the representation of rejecting the lower zone. With the hype of the altcoins season, there is a huge possibility price will has its upside movement to test the green gray region at 0.023 BTC.
For USD value, I’ll expect the $800 region as the take profit zone in the future. Similar with the XLM’s price action, price has broken out of the blue region as the pivot point.
If you ever ask me about what other coin which is more applicable and more scalable than Bitcoin, I’ll simply answer Litecoin as the one. Litecoin is one of the most sustainable coins in the cryptocurrency industry. With its huge community, Litecoin is really attractive.
LTC/BTC price action is now trending nearly the APEX of crossing point between the black resistance trend line and the blue support zone which mark the price is now still trending at the bottom of its cycle. However, I see the potential breaks out of the black support trend line in the future as the asset is now super undervalue. I’m giving the target of 0.017 BTC for the next bull run.
As the USD value is consistently forming a series of higher high and higher low structure, it gives me another attraction to collect more of this coins. Recently, price has broken out of the $140 resistance zone as the interim swing high and is trending closer to its ATH. $590 is an ideal target for LTC in the long term as well.
Beside the Ethereum and EOS, another platform to support dAPPS is Cardano which I can see it can competes with the previous 2 coins I mentioned. The decentralized nature of the Cardano blockchain makes it secure, while the layered architecture provides scalability.
ADA/BTC looks so good with its upside surge since the bottom of this cycle has met. It’s currently testing the strong area of resistance at around 0.00002 BTC which breaking out of this area of resistance will bring the price to further upside movement. The target for this coin will be at 0.00006 BTC as the previous resistance at the All Time High and slightly below the liquidation zone.
On the USD value, price is also testing the previous ATH. There are a lot of hype about Cardano lately that potentially can brings the price to much higher level if price can breaks above this area of resistance. $2 is not impossible for Cardano to be tested for the future movement as the bullish momentum is still great at current level.
Beside all of these coins I mentioned, there are also another coins that I’ve accumulated related to the DeFi coins such as LINK, UNI, AAVE, and DOT. However, I don’t mentioned them on this article because most of them have shown us a rally to the upside and accumulating at the top clearly is not wise at all.
All the coins that I’ve mentioned above is not a financial advice that we provide for you. This is just a suggestion and it simply contain an education purpose too. If you want to enter such as coins for DCA, kindly do your own research.
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