The leading utility crypto coins received scores for risk and their long-term chart outlook. This is focused on the coins’ price performances and technicals that are used to gauge possible trading ranges for the future. The score metrics are explained and analyzed for each of the top utility coins.
Risk Score
The Risk/Reward gauge measures risk by comparing the movement in a cryptocurrency’s price with the volume. This allows us to tell if a big move in price is caused by a lot of dollars flowing into, or out of, the market.
Big moves accompanied by big dollars mean lots of people are trading that crypto. Big moves on small volume mean the market is relatively “thin”. This can mean price movements are likely to be unpredictable, and could even point to coins or tokens where the price is being manipulated by a few traders hoping that a big jump in price will attract new investors that they can sell to at an inflated price.
The metric looks at recent changes in volume and market cap to evaluate how much a token can be manipulated by limited trading.
Coins with a high score will be relatively safer, although these may also be some of the less volatile coins. Coins with low scores have prices that move up, and down, quickly, often without any warning, so investors should be careful buying those.
Long-Term Technical Score
The long-term technical rank considers an asset’s consistency, trading patterns, and where it is relative to some long-term moving averages. It also makes sure that recent moves haven’t left the stock overextended.
The proprietary scoring system weighs price movement from recent months to a year, analyzes the coin’s support and resistance levels, and where it is relative to long-term averages to determine whether it’s a strong buy-and-hold investment opportunity.
This ranking metric is most useful to buy-and-hold type investors looking for strong steady growth when allocating their assets. coins with a high long and short-term technical score can help indicate assets that have bottomed out, providing investors a chance to ‘buy the dip’.
More on the Long-Term Technical Score
Filecoin (FIL)
Considering local and cloud storage is one of the modern world’s primary problems, two of the featured utility crypto projects focus on this issue:
Filecoin is a peer-to-peer network that stores files, with built-in economic incentives to ensure files are stored reliably over time.
In Filecoin, users pay to store their files on storage miners. Anyone who wants to store their files or get paid for storing other users’ files can join Filecoin. Available storage, and the price of that storage, is not controlled by any single company. Instead, Filecoin facilitates open markets for storing and retrieving files that anyone can participate in.
Filecoin includes a blockchain and native cryptocurrency (FIL). Storage miners earn units of FIL for storing files. Filecoin’s blockchain records transactions to send and receive FIL, along with proofs from storage miners that they are storing their files correctly.
FIL Long-Term Technical Score: 45
Siacoin (SC)
Similar to Filecoin, Sia is a decentralized cloud storage platform that intends to compete with existing storage solutions, at both the P2P and enterprise level. Instead of renting storage from a centralized provider, peers on Sia rent storage from each other. Sia itself stores only the storage contracts formed between parties, defining the terms of their arrangement.
Sia leverages blockchain technology to create a data storage marketplace that is more robust and more affordable than traditional cloud storage providers.
SC Long-Term Technical Score: 42
Golem (GLM)
Golem is the first truly decentralized supercomputer, creating a global market for computing power. Combined with flexible tools to aid developers in securely distributing and monetizing their software, Golem altogether changes the way compute tasks are organized and executed. By powering decentralized microservices and asynchronous task execution, Golem is set to become a key building block for future Internet service providers and software development. And, by substantially lowering the price of computations, complex applications such as CGI rendering, scientific calculation, and machine learning become more accessible to everyone.
Golem connects computers in a peer-to-peer network, enabling both application owners and individual users (“requestors”) to rent resources of other users’ (“providers”) machines. These resources can be used to complete tasks requiring any amount of computation time and capacity.
GLM Long-Term Technical Score: 43
Basic Attention Token (BAT)
BAT is the currency token for the Brave Browser. A decentralized browser that rewards creative advertising content creators and the end-user with BAT tokens when they use the platform. The browser has best-in-class privacy, it doesn’t collect user data at all.
They offer multiple features including Brave rewards, where users can opt in to view privacy-preserving, first-party ads from the Brave private ads network and earn BAT for browsing. As well as the Brave Wallet, which is built into the browser. The wallet allows users to buy, store, send, and swap assets; NFT & multi-chain support; and more.
BAT Long-Term Technical Score: 20
Takeaways
All of these projects are exciting and have potentially industry-changing features in their respective industries. However, timing is important when considering investing in any asset.
All of these tokens received low risk scores except for Siacoin, which earned a medium risk score. This suggests that there might be more short-term price manipulation and a ‘thinner market’ with less liquidity in Siacoin compared to the others.
Regardless, these are all more widely adapted coins with established companies behind them. This suggests that, compared with other cryptos (like meme coins), they should be less risky.
Three of the coins received similar Long-Term Technical Scores: 43, 42, and 45. These are all fairly neutral scores which means they might just continue tracking the overall crypto market performance. BAT received the lowest score of 20. This suggests that BAT has the weakest long-term chart based on technical analysis. Considering the crypto market has pulled back significantly within the past months, BAT might be the one to keep going lower before turning the corner. Effectively lagging behind the market.
For comparison Polygon (MATIC) received a much higher score of 79. The MATIC chart does look really good, seemingly leading the market and the overall crypto reemergence.
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