The truth about most cryptocurrencies

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As a long-time crypto investor, I’ve seen my fair share of ups and downs in the market. The current bearish trend has left many of us holding altcoins that are not appreciating in value, and it’s natural to feel uncertain about whether we should hold on or cut our losses.

For those who have invested in cryptocurrencies, it may be disheartening to see that the value of some coins and tokens has not increased as expected. Previous pledges and forecasts have failed to materialize. The question then arises: Should these assets be sold now? And what can serve as a reliable indicator of an altcoin’s future potential?

Holder pain to continue?

Some altcoins that emerged during past market upswings continue to be held by various investors, including retail ones, who harbor the belief that these digital assets may regain their former peak prices. In most cases, the purchase price for these coins was likely close or identical to their current value.

Some altcoins have successfully built large followings, and members of these communities remain hopeful that future innovations will enable their coin to reclaim and even exceed its past record-high prices.

As a researcher studying the cryptocurrency market, I’ve come across several altcoins that are experiencing significant losses against the US dollar and other digital currencies. The reasons behind this trend are multifaceted. It could be due to outdated or slow technology, unfavorable tokenomics, an excessive supply of tokens issued by a centralized authority, or simply a use case that is not gaining traction. Regardless of the cause, it’s evident that these altcoins are likely to continue experiencing financial pain for their holders.

It’s possible that something groundbreaking could still occur in the technology or through major collaborations with corporations or governments. However, as time passes and a crypto project fails to generate substantial income or attract a large user base for transactions, the probability of a favorable outcome becomes increasingly slim.

One of the best indicators 

One effective way to rephrase the given text in natural and easy-to-read language is as follows: What serves as a reliable benchmark for determining whether an altcoin is worth holding or not? Quite simply, assess its price trend against Bitcoin. If your altcoin has been gaining value relative to Bitcoin over a significant time frame, it may be a promising investment. Conversely, if the price trend is negative, and your altcoin continues to depreciate in value against Bitcoin, it might be wise to consider disposing of it.

As an analyst, I’ve found it incredibly enlightening to examine the performance of all altcoins relative to Bitcoin (BTC) since the current bull market commenced around late 2022 or early 2023. Few altcoins have managed to consistently surpass Bitcoin’s gains during this period.

Two charts that do not inspire confidence (and one that does)

As a researcher examining the historical prices of cryptocurrencies XRP and ADA against Bitcoin, I’ve noticed an unsettling trend. Since 2014 for XRP and 2018 for ADA, their prices have remained stagnant in comparison to Bitcoin’s. This pattern does not instill a sense of optimism in me as an observer.

Despite the graph of RNDR versus BTC indicating a reversal, it’s clear that an uptrend for RNDR has been in progress since early 2023. It’s essential to keep an eye on the price action to ensure that the rebound from the 0.618 level remains strong and that eventual resistance is surmounted.

Do not become wedded to your altcoins

It’s common for investors to develop strong attachments to their altcoins. However, it’s essential to remember that all cryptocurrencies require regular assessment. If they fall short of Bitcoin’s performance and there isn’t a compelling justification, it may be prudent to sell them off.

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2024-06-28 15:11