2020 has been a unique year mainly due to the global COVID-19 crisis that continues to rattle the world’s economy. Along with the society’s lifestyle changes brought about by the “new normal”, the market is undergoing even more challenges.
Nevertheless, market volatility is characteristic not only of cryptocurrencies but of all the investment markets.
Interest in Bitcoin and other cryptocurrencies including Ethereum has been booming during the first semester of 2020 due to many unprecedented events, thus climbing the search for viable finance alternatives.
More positive sentiments and the hunt for alternative investment due to the plummeting market economy can predict a bullish crypto explosion in 2020 and in the years to come. Nevertheless, we cannot point out which crypto will emerge as the top gainers at the end of this year and in the coming year of 2021.
But one thing is for sure: all charts argue that our top cryptocurrencies are indeed faring better than fiat currency.
So which cryptocurrency should you buy in 2020 to 2021? In this article, we take a close look at the top ten cryptocurrencies and make our crypto predictions for 2020 up to 2021.
Since 2009, Bitcoin has consistently topped the list in terms of market capitalization and mass adoption. After peaking in 2017 when it reached almost $20,000 per coin after its second halving, the currency is beginning to see golden days again in 2020.
BTC/USDT daily price (Source: TradingView)
During the third halving event on May 11, the Bitcoin community has already proven that 2020 would be an exciting year for the said currency. With halving generating enthusiasm and social media traffic, the currency rallied to over $11,798.52 as of the time of writing.
Bitcoin has already formed a long term price relationship with the bulls in the past years. Based on the Fibonacci retracement alone, Bitcoin’s price continues to soar high as it breaks the Fibonacci level of 0.236. If this performance continues, Bitcoin could reach $25,000 in 2020 and could even touch the sky high price of $50,000 in 2021.
However, there are still threats that could change this bullish course the other way around, the whales is one of them. These whales are wealthy investors that could change the way the market goes in a snap. Bitcoin must play along with these creatures to maintain its playtime with the bulls. The whales can dump massive amounts of coins that could make the price of the coin plummet instantly.
Bitcoin might be the most popular digital currency, but there is no argument that Ethereum is by far the most influential one. The explanation is simple: ETH enables thousands of cryptocurrency projects to be developed under its blockchain.
What makes the platform so famous is that, unlike other blockchains, Ethereum is not limited to a few operations. Instead, it allows developers to create whatever program that their minds can conceive.
This resulted in more than 2,500 different types of decentralized applications (DApps) within the Ethereum platform.
How will Ethereum fare in 2021? Let’s see in this chart and make a conservative crypto price prediction for the end of 2020 and in 2021.
ETH/USDT daily price (Source: TradingView)
According to the graph above, the ETH price continues to increase since the start of the year, from $127.58 in January 2020, all the way to $411.66 in Aug 2020. Analysts claim that DeFi is one of the main contributors to Ethereum’s outstanding rally. The platform’s progress speaks for itself that ETH can have a bright future ahead in 2020.
Furthermore, Ethereum is trying to break out from the Fibonacci 0.5 level, which is above the Fibonacci golden level. If its price successfully breaks out, the crypto might finally find a way to join the new group bulls in running toward the price of $800 – $1500 in 2021.
3. Ripple (XRP)
Ripple is a San Francisco-based company that utilizes its native digital asset called XRP to move funds across borders. Its blockchain and network are aggressively opening doors to new opportunities in the field of international commerce, banking, and other payment systems.
In the last quarter of 2019, remittance giant MoneyGram received over $11 million from Ripple. This amount of money was said to be used for MoneyGram’s global payment solution with the help of blockchain technology.
Furthermore, European money transfer service Azimo also announced that it would use Ripple’s On-Demand Liquidity (ODL) technology to increase its cross-border fund transfers.
These partnerships and integration with Ripple’s blockchain technology can drive the price of XRP to new heights this 2020.
XRP/USDT daily price (Source: TradingView)
As seen on the chart above, XRP continues to play with the bulls since its moving average convergence/divergence (MACD) cross over in the month of July. If this goes on, the price of XRP can break out the Fibonacci golden ratio that could lead to a bullish price of $.40 to $.50 before the 2020 ends.
Furthermore, XRP is expected to gain new partnerships with many financial institutions in the year of 2021. Because of this, the price XRP might reach the price of over $1 in the first to second quarter of 2021.
4. Tether (USDT)
Tether (USDT) is a digital asset issued on the Bitcoin blockchain. It is known as the most prominent stablecoin. The coin’s price is artificially maintained to match the value of real-life assets in which they are pegged at (US dollar in the case of USDT).
USDT/USD daily price (Source: TradingView)
From the beginning of 2020 until July, USDT has maintained its price from $0.99 to $1.020. This strong market standing with less volatility indicates that USDT is facing a potential bull run.
According to Trading Beasts’ research, USDT price is forecasted to reach $1.2806067 by the end of December 2020. Furthermore, the performance of the crypto has been well in the previous months of 2020. It is seen that the crypto mostly stays with $1, which the investors find convenient. This is a good sign for the crypto before the year ends. By 2021, it is predicted that the crypto will reach the price of $1.2 to $1.5.
5. Bitcoin Cash (BCH)
Bitcoin Cash is a hard fork of Bitcoin. Within two years, it has proven to have a healthy market capitalization. Aside from that, the daily trading volume of the coin is estimated to be over $1 billion, which is a good indication that traders are supporting its projects.
BCH/USDT daily price (Source: TradingView)
BCH also prevails above fiat in some countries like Australia. These achievements that BCH accomplished and its rising role in the world can predict a chance for a better index this 2020.
Moreover, the crypto has been seen to be moving between the price of $211.22 to $239.91. As shown above, the price of BCH is now traded above the Arnaud Legoux Moving Averages (ALMA). If this continues to rise, the crypto could break out from its resistance level of $240 in the last quarter of 2020.
At this point, if BCH goes with the bulls in breaking one resistance level to another, the crypto can be seen to reach the price of $300 to $600 in 2021.
6. Bitcoin SV (BSV)
Bitcoin SV, on the other hand. is a hard fork of Bitcoin Cash. It was born from a rift that occurred in the BCH community.
BSV/BTC daily price (Source: TradingView)
Regarding the price of BSV, there has often been a lot of speculation that resulted in considerable volatility especially this 2020. As seen on the graph above, the price of the coin has moved significantly in the mid-year bull run of 2019 until the last quarter of the year.
However, the BSV ecosystem has grown aggressively to approximately 400 ventures and projects around the world. As of January 19, 2020, there were about 394 company protocol projects and protocol layers built on or for BSV.
Simplex, a leading provider of global credit and debit card processing for digital currency exchanges and wallets, also added BSV. This partnership will enable Simplex to have over 150 partners to allow crypto users to buy BSV using credit and debit cards.
With new projects and partnerships being announced on a regular basis, BSV can be one of the cryptocurrencies that have a great future this 2020.
Furthermore, the price of BSV/BTC has been seen to be volatile in the past days, if this trend continues, the bears could pull the crypto further down to its support level price of $0.01489. On the contrary, if the bulls try to rebound and push more, the crypto may have the chance to reach and break the resistance level of $0.0176. It could even skyrocket up to $0.018 to $0.02 in 2021 if the market favors the crypto.
7. Litecoin (LTC)
Litecoin is one of the fastest and most affordable cryptocurrencies for payments. It was released in October 2011 by Charlie Lee, a former Google employee. A fork of Bitcoin, it has a smaller block generation time and uses the Scrypt algorithm.
Litecoin is a cryptocurrency to watch out for this 2020. Lately, it has partnered with the South Korean crypto company MeconCash which allows LTC to be integrated into the MeconCash (M.Pay) platform and enables LTC withdrawals in Korean won at over 13,000 ATMs in the said country.
LTC/USDT daily price (Source: TradingView)
LTC’s price mainly depends on the mass adoption of its cryptocurrency, and because of its partnership with the said Korean company, LTC users seem to be looking forward to a bright path this 2020. As of this writing, LTC’s price is $50.90, which is a huge climb from its price of $ 45.34 upon entering 2020.
However, the bears could sink the price of the crypto if not defended by the bulls properly. The bulls must break the Fibonacci golden ratio (0.618) in order to touch $70 and move away from the diving bears. If the bulls succeeded in breaking resistance, level by level, the crypto’s price could be predicted to reach $150 – $200 in 2021.
8. Cardano (ADA)
Cardano is a decentralized cryptocurrency platform that is designed to allow secure, scalable, complex, and programmable transfers of value. Its decentralized ecosystem runs on its own cryptocurrency called ADA.
According to Quantstamp CEO Richard Ma, Cardano will become the second largest DeFi platform. Meanwhile, Cardano Founder Charles Hoskinson also made an announcement on the platform’s official Twitter account that they are set to launch smart contracts and Cardano-based native assets before 2020 ends.
ADA/USDT daily price (Source: TradingView)
These updates can drive the cryptocurrency toward mass adoption and lead to a bullish year. ADA price has also risen by more than 40% in the last 30 days and has fought its way to the top ten among the largest cryptocurrencies.
As of the time of writing, the price of the crypto opens under the ALMA indicator. If this continues, the crypto could fall down with the bears all the way down to the foreseeable $0.085 resistance level. However, if the crypto bounces back to join the bull resistance at $0.0997, the crypto might find its rocket vessel towards the price of $2 in 2021.
9. Chainlink (LINK)
LINK is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. In other words, it enables blockchain to interact with smart devices and other digital information in real-time. It also allows smart contracts to access a more extensive array of information and connect with APIs.
The crypto community’s sentiment toward LINK appears to be positive due to the growth of DeFi platforms, which need Chainlink’s oracles in order to operate seamlessly. It is said that the total value locked in the DeFi market achieved a new record of $3.56 billion.
LINK/USDT daily price (Source: TradingView)
The increasing demand for Chainlink’s technology is an indication that the platform is doing well.
On August 20, the price of LINK was $16.36 and its price has seen an uptrend for the past 1 year from a price of $2.17 in Aug 2019. If this momentum continues, the crypto will increase further before 2020 comes to a close.
Furthermore, the MACD was seen to be near in performing a cross over. This signals the end of the bears reign over the crypto. If the MACD successfully performed a golden cross, the crypto could join the bulls on its journey in breaking the $13.463 resistance level. It could also be predicted that the crypto price could break in $30 to $40 in 2021.
10. Binance Coin (BNB)
Binance Coin is the digital currency that fuels all operations in the Binance exchange, which is expanding its influence and acquiring new markets across borders. The latest expansion was in South Korea and in the US. They also added trading pairs with the Russian ruble.
Aside from these achievements, the platform also launched new products in the crypto market, such as Binance DEX and Binance chain. These played a very important role in the growth of BNB.
In order to trade on Binance DEX, users are required to use BNB. As a result, the cryptocurrency has experienced mass adoption and price growth.
BNB/USDT daily price (Source: TradingView)
In addition, the platform burns BNB every quarter, and it is noticed that during this event, the price of the coin increases.
As stated in the graph above, the price of BNB has come a long way from this year’s bearish price of $9.14 in March 2020 to $32.31 on Sept 14, 2020. If these positive results continue, there is a big possibility that BNB can have a good year until the end of 2020 until the opening of 2021.
However, investors must be aware of the oversold position of the RSI. This position must not be set aside since this figure involves high risk. Aside from that, there is not that much to worry since the bulls are seen to be breaking one resistance to another.
Where to invest today: crypto predictions 2020 – 2021
The coronavirus pandemic has threatened the start of 2020 and made the global economy bend on its knees, as various business sectors have halted to a standstill.
As a result, governments have found themselves being forced to provide solutions such as quantitative easing and zero interest rates.
These scenarios show that this can be an advantage for the crypto industry since printing more money devalues currency and causes inflation. That said, cryptocurrencies have a better footing this 2020 despite the world’s growing economic crisis.
Another fact that could contribute to the sustained rally of cryptocurrency this 2020 is the partnership of the payment giant Visa with Fold, a cryptocurrency startup.
The Fold network is said to offer a card that rewards its users with cryptocurrency instead of mileage or cash. The credit card offered by Fold can be used in major companies and outlets such as Uber, Amazon, Airbnb, and Starbucks.
Fold Chief Executive Officer Will Reeves said in an interview:
People are not interested in spending Bitcoin right now but are interested in accumulating it, and If people don’t understand Bitcoin as money yet, they certainly will understand it as a better reward.
With the continuous growth and integration of different cryptocurrencies in the market with real-world applications, it is possible that the crypto market can maintain its position this year and climb even higher in 2021.
Disclaimer: This article must not be used and considered as a piece of financial advice. This serves only as an informative material about cryptocurrency. The crypto market is subject to high volatility and regulatory uncertainty. Kindly do in-depth research prior to engaging or investing in any cryptocurrencies.