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.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD hovers around 1.0850 as US Dollar stabilizes

EUR/USD hovers around 1.0850 as US Dollar stabilizes

EUR/USD is trading sideways at around 1.0850 in European trading on Monday. A lack of fresh fundamental catalysts and holiday-thinned market conditions leave the pair oscillating in a tight range. 

EUR/USD News

GBP/USD keeps range near 1.2750 amid holiday-thinned trading

GBP/USD keeps range near 1.2750 amid holiday-thinned trading

GBP/USD is trading modestly flat, keeping its range near 1.2750 in the European morning on Monday. The pair is subject to thin liquidity and minimal volatility, courtesy of US and UK market holidays. 

GBP/USD News

Gold price edges higher, Israel strikes Rafah and boosts safe-haven flows

Gold price edges higher, Israel strikes Rafah and boosts safe-haven flows

Gold price (XAU/USD) gathers strength on Monday. The softer US Dollar (USD) and the renewed escalating geopolitical tensions in the Middle East provide some support to the yellow metal. 

Gold News

BTC/USD appears poised for further outperformance

BTC/USD appears poised for further outperformance

Last week was another positive for BTC/USD, which was up +1.9% as of London’s close on Friday despite finishing considerably off its best levels. Price movement on the weekly timeframe has been working between the limits of a potential bullish flag pattern.

Read more

Final full week of May welcomes updated inflation data

Final full week of May welcomes updated inflation data

Monday will likely be a snoozer, with US and UK banks closing in observance of Bank Holidays. The majority of focus this week will fall on Friday’s US PCE inflation for April, alongside personal income and spending. 

Read more

Majors

Cryptocurrencies

Signatures