Two cryptocurrencies to buy in 2020
|- Crypto winter might be over in 2020 and that could provide good buying opportunities.
- Cardano (ADA) and DASH show positive fundamental developments.
- Both cryptocurrencies are close to breaking out of long-term bearish trends.
The cryptocurrency market went through the "Crypto Winter" over the course of 2018-2019. Sellers have been in control, as rallies did prove to be very short-lived, being sold by the bears. The current phase may have been a way of the market having somewhat of a flush out, clearing the noise from the system. Nevertheless, it is safe to say that the market has significantly matured over the past few years.
Given the downward market, it has presented a number of potential bargains across the sector. There are cryptocurrencies and, of course, their respective foundations that have much to offer in terms of capabilities. Let's take a look at two potential prospects to buy for 2020.
Cardano (ADA)
The development team of Cardano has been working towards solving arguably one of the biggest problems with Blockchain networks, which is scalability.
Cardano's blockchain is aiming to bring billions of people that do not have access to banking under the umbrella of financial services. In order for this to happen, the network of Cardano needs to work with increased traffic. This is achievable with a scalable ecosystem.
The CEO of Cardano Foundation, Charles Hoskinson, has said that their team is working on sharding and parallel chains. Both of the concepts aim to eliminate scalability problems.
One of Cardano's goals is to create incentives for a decentralized blockchain network to expand ADA payments worldwide. They are making steps towards it with the launch of their project Shelley test network, following the launch on 16 December 2019.
As of late last year, there was a strong recording of stake pools, which experienced exponential growth. It reached some 340 stake pools at the time, according to Charles Hoskinson. In total, the participants of the Shelley test network have staked 7.5 billion ADAs, which corresponds to about 256 million USD. Shelley is an update of Cardano that introduces staking and incentive systems to the network.
Since the launch, there have been further encouraging comments from the founder, with much promise to look forward to 2020.
ADA/USD daily chart
Price action via the daily chart view has been capped to the upside by a descending trend line, which has been in play since mid-July 2019. A breakout and daily closure above this could provide a new wave of buying momentum for further recovery.
Dash (DASH)
Dash is a crypto that I like because of its real-case values, of which are being leveraged as a resolution to an economic crisis. The case being referred to is Venezuela, with the country suffering from hyperinflation since at least 2014. The Bolívar (VEF) has rapidly plummeted in value. As a result, Dash has been providing struggling Venezuelans with stores of value and mediums of exchange they could rely upon, versus that of the nosediving Bolívar.
The Dash Core CEO, Ryan Taylor, spoke about the success Dash was having in the country and noted:
"We've found that regions of high inflation rates and industries in which cash handling or credit card chargeback rates are high have been most excited to adopt the technology. For us, we focus on those segments in which cryptocurrency can offer the most benefit, and that's one of the reasons growth in acceptance is so high."
These are meaningful fundamentals, as they set proven examples of the cryptocurrency functioning in the real economy. A blog post on the Dash website indicated that all 40 Burger King locations throughout Venezuela are expected to accept coins in 2020.
Ryan Taylor commented on this update:
Dash usage continues growing at a rapid rate in Venezuela, as it provides an alternative that is a more reliable payment method and store of value.
DASH/USD daily chart
Market structure has been largely tilted to the downside, with rallies being sold by the bears. Lower highs are being produced, setting resistance levels which the bulls will need to break in order to restore a technical bullish bias.
This article belongs to the 20 trading ideas for 2020 series. Check the full list of 2020 pieces.
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