2021 was a fantastic year for crypto with the phenomenal returns growth of NFTs, DeFi, and Coins in general. The year 2022 promises even more significant growth as inflation rises faster than ever and the mainstream use of decentralized services all over the globe.
Moreover, the rising interests in altcoins (coins other than Bitcoin) and the craze of meme coins bring communities together. This growing interest can finally help many altcoins cover more market share and compete against big players like Bitcoin and Ethereum.
Let us look at ten altcoins that may give phenomenal returns if they play their card rights in 2022. We have selected these coins based on past performance and their ability to bring change or upgrade the crypto-verse. The case for Bitcoin is clear enough, so we have focused on altcoins. So, let’s jump right into the list of Top 10 altcoins for 2022.
10. Binance (BNB)
Taking the 10th spot in our list is the cryptocurrency of the world’s biggest crypto exchange by volume, Binance. BNB is the native cryptocurrency of the Binance Smart Chain (BSC), the blockchain protocol of Binance that supports the smart contracts to be helpful in DeFi, NFTs, and other applications. BNB is also the native cryptocurrency of the Binance Chain, the earlier iteration that continues to exist in parallel to the BSC.
The need for a layerx 1 alternative to Ethereum has increased the popularity of BSC and makes it one of the top contenders. This rising interest in BSC within the crypto world has increased the demand for BNB tokens and helped grow approximately 1350% in the last year.
Taking a technical perspective of the BNB token, the coin has performed well in maintaining an uptrend last year. However, a barrier remains at $650 that has pushed the price down twice. The price action fails the W-shaped pattern in the weekly chart, but the support zone near the $500 mark halts the downtrend and attempts to push the price higher.
The crucial EMAs (Exponential Moving Average) of 50, 100, and 200 in the weekly chart maintain an uptrend while the price breaks the 50 and 100 days EMA to approach the 200 days EMA in the daily chart.
Therefore, a reversal is possible near the confluence of the $500 support zone, support trendline in the weekly chart, and the 200 days EMA that can push the price higher above the $650 mark. We can see a bull run to the $1100-$1700 mark post-breakout as per the following Fibonacci retracement levels.
9. Polygon (MATIC)
Polygon is a layer 2 scaling solution that aims to solve several of the most pressing issues which confront Ethereum today, like high fees, a slow transaction rate, etc. Polygon’s focus is to create “Ethereum’s internet of blockchains”. Although Polygon currently supports Ethereum based chains, the platform plans to add support for other base chains depending on community suggestions and consensus.
Studying the weekly technical chart, 2021 initiated a remarkable rally in its price. However, right from the second half of the year, the coin faced intense selling pressure from the $2 mark, trying to push this trading pair to the lower levels. The technical chart revealed an ascending triangle pattern after facing multiple rejections from this formidable resistance.
The weekly-EMA levels(20, 50, and 100) maintain a bullish alignment for this coin. The majority of usual correction phases in the price are covered by the 20 and 50 EMA lines.
In the first week of December, the coin price finally gave a proper breakout and closed above the $2 resistance. The price started rallying and made a New-All Time high of $2.92. Currently, the coin is retracing, which might retest our breakout point to check for sufficient demand. If the price sustains above the $2 mark, the Fibonacci retracement level suggests the $4.2 and $5.2 could be possible resistance levels for MATIC coin.
8. Ethereum (ETH)
In terms of percentage gain, Ethereum had the upper hand over Bitcoin in 2021. On November 8th, the coin made a New All-Time High of $4891, indicating a growth of 530% this year.
Ethereum is a decentralized open-source blockchain system that supports smart contract functionality. Ether (ETH) is the native cryptocurrency of the Ethereum platform. Moreover, this blockchain can host other cryptocurrencies (tokens) using its ERC-20 compatibility standard.
Ethereum is a global platform for decentralized applications, allowing its users to write and run software that is secured from censorship, downtime, and fraud. Although it continues to be plagued by significant scalability problems and high transaction costs (so-called “gas fees”), Ethereum remains the world’s leading smart contract platform today. It is more of an operating system than a money system like Bitcoin. Ethereum is the platform that all other similar platforms are trying to eclipse. Activity on the Ethereum blockchain drives the demand for its native cryptocurrency, Ether.
Looking at the weekly technical chart of Ether shows steady growth with an occasional pullback to stabilize the price. After rejecting from the $4890 mark with an evening star pattern, the coin entered a similar correction phase. So far, the coin price has discounted by 23% and is trading near a confluence of majority technical levels that can bolster the price.
These support levels are;
- 0.236 Fibonacci retracement level
- 20 EMA dynamic support-
- horizontal chart support near $3800
Thus, the ETH coin behavior at this level will cause a significant impact on its further rally. Sustaining above this level, the price will continue its uptrend, and according to the Fibonacci extension level, it could reach $6650 or $8500 in 2022.
On a contrary note, if the sellers drop the price below the $3700 mark, this correction will extend, and the next significant support would be $3000.
7. Avalanche (AVAX)
With a 400% price jump in the coin price, the AVAX coin price seems to be getting more bullish attention. AVAX is the native currency of Avalanche, a layer 1 blockchain that is one of the main competitors of Ethereum. It plans to replace Ethereum by outdoing it with speed. It has a transaction speed of up to 6500 tps (transactions per second) without compromising scalability.
Since the launch of its mainnet in 2020, the Avalanche platform has become a home for multiple DeFi and dApps. The expansion of its ecosystem with the increasing focus on interoperability with the development of bridges means the platform shows a promising future in 2022.
Considering the weekly technical chart, the AVAX coin price shows a bullish reversal from the $100 mark, which has acted as a psychological support level. By making a morning star pattern, the price maintains above the 50% Fibonacci retracement level. However, the increased chances of a reversal tease in the double bottom pattern formation can drive the next rally. The RSI (relative strength indicator) and MACD maintain their bullish signal for AVAX, with the RSI slope sustaining in the nearly overbought zone and the fast and slow lines rising higher in the positive segment.
The rally can find supply near the following Fibonacci retracement levels at the $250 and $375 mark. And, the rising interest of buyers into the next-possible Ethereum will drive the AVAX coin price higher. Therefore, it remains a viable and profitable coin with phenomenal returns in 2021 and will attempt to repeat history in 2022.
6. Enjin (ENJ)
Coming in on number 6, we have the Enjin Coin with a track record of providing incredible returns to its investors in 2021. And, with the increasing development in blockchain gaming, Enjin coin plans to provide the same results in 2022 as well.
ENJ is an ERC-20 compatible token that is built on the Ethereum blockchain. But the ENJ token is just the tip of the Enjin iceberg. ENJ allows users to buy and sell NFTs, gaming assets, and other digital assets with the help of Enjin wallet. Enjin reduces the high transaction fees and helps reduce the fraud cases in the transfer of digital assets. Developers even use it to develop these assets.
The technical chart of the Enjin Coin shows a sideways movement after the rejection near the $4 mark. The dream to rise above $4 to reach new all-time high levels can come true in 2022 as the gaming industry expects a boom in the sector this year. The Fibonacci retracement levels propose the next supply level at $7.65 and $12. Therefore, the $4 breakout entry opportunity is not to be missed for momentum traders.
5. Gala (GALA)
Gala Games’ goal is to create “blockchain games you’ll want to play”. They believe the gamers should have better control over the games on which they spend their time and money. The game items and any inheritance status owned by the players are verifiable assets on the blockchain using blockchain technology.
With the fast-growing GameFi industry, which features play-to-earn (P2E) games and non-fungible tokens (NFTs), GALA could show exponential growth in the near future.
In November 2021, the token that gained considerable popularity compared to most crypto was GALA. That month, the token price surged more than 860% and created a New All-Time High of $0.84.
Studying the daily time frame technical chart, the GALA states a clear uptrend in its price. On November 26th, the price was rejected from the $0.84 mark with an evening star pattern and entered a correction phase. The coin lost half of its value during this pullback and plunged to $0.4.
The GALA token price is still trading above the crucial EMAs (50 and 100), indicating an uptrend in this chart. Though the sellers have flipped the 20 EMA on their side, the 50 EMA line still stands as solid support.
The crypto investors can maintain a bullish sentiment for GALA until it sustains above the $0.4 mark. Moreover, if the price could start revelry from this level and important supply region beyond the All-Time High level could be $1.38 and $1.45.
4. Axie Infinity (AXS)
Described as the decentralized version of Pokemon, Axie Infinity became one of the top gainers in 2021. And the growing interest of gamers in this play-to-earn platform can help the token breach previous levels and create new heights in 2022. The game allows users to collect, breed, raise, battle, trade, and even rent the non-fungible token-based creatures (NFTs) called Axies.
The game’s increasing popularity can be judged by the fact that many full-time workers are quitting their jobs to earn while playing. Moreover, the experienced players are starting to rent out their Axies to bring new players into the community. The growth of the gaming community can bring more bullish attention to the game in 2022.
Taking the growth of more than 39000% of last year into account, we can observe a growth of equal potential despite the retracement in the early days of 2022. The price is below the $100 level but shows sideways movement between $90 and $100.
The trend-based Fibonacci extension shows that the next uptrend will break above the $300 mark and continue its higher journey. Therefore, a possible high of more than $550 is possible by the end of 2022.
3. SandBox (SAND)
SandBox is the third-largest decentralized metaverse project as per the market capitalization on CoinMarketCap. Sandbox revolutionizes the gaming industry as game creation marks a significant change in the gaming sector by creating a world where gamers can build and collect digital assets based on blockchain technology.
With the increasing involvement of users to further develop the platform, it is evident that Sandbox pays attention to the details in the content that users create. The SAND token is the governance token of the platform that allows the users to raise their opinions about the further growth of the platform.
In the latest developments, PwC Hong Kong’s consulting firm purchased land in Sandbox metaverse, which helped the SAND token reach new heights and spike more than 15% in a day.
In 2021, the SAND token showcased a remarkable bull run with a rally of more than 24500% making it one of the best investments in the crypto-verse of 2021. The platform plans to repeat the same results last year if they play their cards right. Moreover, the growth of Meta by Zuckerberg will provide sudden bursts of buying pressure in the SAND token.
The Fibonacci retracement levels showcase a possibility of a bull run to the $27 if the price breaks above the $8 resistance level. Moreover, the EMAs in the daily chart maintains a bullish alignment that will provide support to sudden and short reversal.
2. Decentraland (MANA)
Decentraland is the largest decentralized metaverse in the crypto-verse as per the market capitalization on CoinMarketCap. With more than 7500% growth in its native currency, MANA, the platform defines itself as a VR platform (virtual reality) built on the Ethereum blockchain.
Users can create, play, experience, and generate income from content and applications. Buying and selling plots of land in the virtual world is a common and profitable habit for most. Users can later navigate, build upon, rent, and monetize their property according to their fit.
The growing interest of companies, institutions, and retailers will drive the demand for plots of land in the decentraland’s metaverse. In turn, the demand will drive the coin price of MANA higher to new heights.
As per the technical analysis, the MANA coin in the weekly price chart shows a retracement to the 50% Fibonacci level that is assumed to be a solid demand area. Therefore, a reversal will boost the price higher than the $5 mark and reach $16. However, a selling area near the $10 psychological barrier can be challenging to rise above.
1. Solana (SOL)
Taking the #1 spot to be the best investment option for 2022, is the platform with the highest possibility of the next best thing after Ethereum and provides an alternative layer 1 blockchain is Solana.
SOL, the native currency of Solana, is the 5th biggest cryptocurrency in the world as per the CoinMarketCap. The protocol is used to facilitate decentralized apps (dApps) creation. It focuses on improving scalability by combining Proof-of-history with Proof-of-stake consensus of the blockchain. A significant focus of the protocol is to make decentralized finance (DeFi) accessible to more people on a much more manageable scale.
The combination of different consensus mechanisms allows Solana to help small-time retailers and institutions alike. And, the rise of the Solana ecosystem with the crypto-verse actively trying to find an alternative for Ethereum increases the bullish potential of Solana for 2022.
The coin price finds support near the 68.20% Fibonacci retracement level at $175 after the rejection at $270. However, the 200 days EMA is ready to push the price higher despite the 50 and 100 days EMA collapse.
Therefore, the $275 mark breakout can result in a rally to the $700 mark if it manages to rise above $400 as per the Fibonacci retracement levels.
Disclaimer: We hope you enjoyed reading our list of Top 10 coins that may have a breakout year in 2022. This is not financial or investment advice of any sort and you should do your own thorough research before investing in any cryptocurrencies.
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