The crypto market is constantly evolving, with new trends emerging regularly. One of the latest and most promising developments is the rise of Real World Assets (RWA). Following in the footsteps of AI altcoins, RWA tokens are gaining popularity by bridging the gap between traditional assets and the digital world. But with so many options, how do you choose the right RWA altcoins to watch?
Bitcoinworld has compiled a list of 5 RWA altcoins that show significant potential in the coming month. Let’s dive in!
What are Real World Assets (RWA)?
Real-world assets are tangible items like real estate, commodities, and physical goods that have inherent value. Tokenizing these assets allows for easier trading and investment in digital markets. This process involves representing ownership of these assets as digital tokens on a blockchain.
Benefits of Tokenizing RWAs:
- Increased Liquidity: Tokenization makes it easier to buy, sell, and trade real-world assets, increasing their liquidity.
- Fractional Ownership: Investors can own fractions of high-value assets, making them more accessible.
- Transparency: Blockchain technology ensures transparency and traceability of ownership.
- Efficiency: Streamlines administrative processes, reducing costs and time associated with traditional asset management.
Top 5 RWA Altcoins to Watch in July 2024
Avalanche (AVAX)
Avalanche (AVAX) experienced a dip, reaching a seven-month low. Currently trading around $28.48, AVAX is holding above a critical support level of $27.72. The Relative Strength Index (RSI) is showing an upward trend, indicating potential for a rebound.
Key Points for AVAX:
- Current Price: $28.48
- Key Support Level: $27.72
- Potential Target: Close above $31
- Bearish Scenario: Possible fall to $24 if support fails
If AVAX breaks above $31 and the RSI confirms the neutral line as support, a bullish trend could be confirmed. However, failure to maintain the support could lead to a drop to $24, invalidating the bullish outlook.
Chainlink (LINK)
Chainlink (LINK) has shown resilience by bouncing off its critical support level at $12.9. This level has proven to be a strong support floor, providing LINK with an opportunity for recovery. The RSI is approaching the bullish zone, which is a positive sign.
Key Points for LINK:
- Critical Support: $12.9
- Potential Target: Flip $16.5 into support
- Bearish Scenario: Possible drop to $11.9 if support is broken
Given Chainlink’s dominance in the Oracle space, a quick recovery is plausible. The target price is to flip $16.5 into support. However, breaking the $12.9 support could lead to an eight-month low of $11.9.
Maker (MKR)
Maker (MKR), the native token of MakerDAO and Maker Protocol, is showing signs of active recovery. After hitting a multi-month low in June, testing $2,200 as support, MKR has bounced back and is currently trading around $2,457. The RSI is already in the bullish zone, indicating strong recovery potential.
Key Points for MKR:
- Current Price: $2,457
- Key Support Level: $2,200
- Potential Target: Breach $2,693 and rise beyond $3,000
- Bearish Scenario: Possible fall to $2,271 if the breach fails
If MKR breaches the resistance level at $2,693, an uptick beyond $3,000 to $3,159 is anticipated. Failure to breach this level could result in a drop back to $2,271.
MANTRA (OM)
MANTRA (OM) is a Layer-1 Security RWA blockchain that offers permissionless blockchain for permissioned applications. OM experienced significant growth in early June but failed to sustain the gains after not breaching $1.04. However, it has maintained critical support at $0.64 for three and a half months.
Key Points for OM:
- Critical Support: $0.64
- Potential Scenario: Bounce back with RSI nearing the bullish zone
- Bearish Scenario: Possible fall below $0.50 if support is lost
Losing the $0.64 support could lead to substantial losses, potentially pushing OM below $0.50.
Synthetix (SNX)
Synthetix (SNX) is currently exhibiting minimal bullish signs and is trading at an eight-month low of around $1.9. Despite this, it is holding support at $1.8, aiming for recovery. The RSI is signaling a potential bounce back from the oversold zone.
Key Points for SNX:
- Current Price: $1.9
- Key Support Level: $1.8
- Potential Target: Close above $2.7, leading to a rise above $3.0
- Bearish Scenario: Possible fall below $1.8, pushing to $1.5
A recovery resulting in SNX closing above $2.7 could lead to a rise above $3.0. However, if investors sell off, SNX could fall below $1.8, potentially dropping to $1.5.
Conclusion
Real World Assets are revolutionizing the crypto market by bridging the gap between traditional assets and the digital world. While each altcoin presents its own opportunities and risks, keeping a close watch on AVAX, LINK, MKR, OM, and SNX could yield promising results in July 2024. Always conduct thorough research and consider your risk tolerance before making any investment decisions. Happy trading!
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.