The prices of cryptocurrencies change quite rapidly and can be wild. With high attention and trading volumes, patterns are emerging, and technical trading becomes more and more useful. A predictable cryptocurrency slows down and turns back at a clear line of support or resistance. And when momentum is strong enough, the coin makes a clear break and leaves only dust behind it. These are the more predictable coins. Yet not all cryptos are born equal and some trade in a messy and choppy manner, making them less predictable and harder to trade. 

Here are the top 5 most predictable cryptocurrencies, each with its characteristics:

  1. Ethereum: The "flippening" has not happened regarding market cap, but Ethereum ranks as the most predictable cryptocurrency. When the coin breaks out, ETH tends to mark the top or bottom of the range and then trade between the previous line and the new line, respecting the range. Also, its lower highs served as bearish signs, as one would expect. Ethereum also has a good memory for older lines. 
  2. Bitcoin Cash: BCH has been in existence only for a short while, but its performance has been quite remarkable. Similar to ETH, BCH tends to mark the extreme of the new range upon a breakout. Its memory for old lines still falls short, despite its short history. Nevertheless, the clear separation of ranges is noteworthy. 
  3. Litecoin: LTC tends to trend in clear moves to the upside or the downside. It also had an impressive double-bottom of late. The sharper moves were telling, as they indicated the trends via lower highs or higher lows, yet these sharp moves can sometimes be nasty.
  4. Bitcoin: The poster-child for the blockchain technology has a long history and high trading volumes, and this also helps in its predictability. Its uptrends and downtrends are quite straightforward, and it also respects the ranges. The reason for not placing it in the top spot also stems from its popularity: a few panic sell-offs it had suffered undermined its position. BTC tends to perform better when attention moves away from it.
  5. IOTA: This virtual coin used to be quite choppy and had an impulsive behavior, but things recently improved. The cryptocurrency is enjoying both range trading and clear trends at the same time. The sketchier past of IOT limits its predictability going forward.

There are clearly a few notable digital currencies which are not on the list and worth mentioning: 

  • Ripple: XRP shot to stratosphere like a Falcon but fell very heavily. The moves on the charts are erratic. 
  • Cardano: ADA may be in the top 5 concerning market cap, but the charts do not provide any useful information. 
  • NEO: The emerging crypto coin has a potential to enter the list, but it's still too choppy. 
  • Other cryptocurrencies such as Stellar (XLM), EOS, NEM, and even Dash all have occasionally had clear days of trading followed by messy ones.

See the latest developments in cryptocurrencies

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.

EUR/USD News

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.

GBPUSD News

Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more

Majors

Cryptocurrencies

Signatures