With Bitcoin (BTC-USD) already well established, altcoins provide fantastic opportunities for speculators. They are usually unheard of by the masses, yet packed with potential. That’s why they are so sought after as people look for the “next Bitcoin.”
Undervalued altcoins usually have three things in common:
1) They have real-world utility. That means they can be used by global industries for many applications. This mass adoption in the marketplace means huge gains potential for investors holding the coin early.
2) Hardly anyone in the mainstream will have ever heard of them yet. Nobody in the mainstream had head of Bitcoin until it was already worth thousands of dollars.
3) They tend to be only a few dollars, often less than 1 cent. Those who bought BTC when it was less than $1 should be very happy right now! That’s why undervalued altcoins are so sought after.
Pepe (PEPE-USD)
Pepe’s (PEPE-USD) price spike came after Coinbase (NASDAQ:COIN) listed futures for the meme token on its platform. This mainstream acceptance for a crypto historically suggests the start of a long term uptrend. Those who get in early will be holding an undervalued altcoin, if history is any guide.
But what is even more encouraging is that this pump came after a much bigger one dating back a month earlier. So this Coinbase listing is just the latest building block on a very broad platform.
To follow through on PEPE’s recent growth, on May 3, 2024, whales were spotted investing in 4.04 trillion PEPE tokens.
On the chart, PEPE recently broke out of a promising bull flag pattern. It is currently pushing against resistance of an inverse head and shoulders pattern. A breakout of its latest resistance suggests the still-undervalued altcoin is due to break out again to the upside if technicals play out as expected.
If it does, PEPE stands to almost double its current price. But this would be helped greatly by PEPE’s notorious hype machine, combined with an Ethereum (ETH-USD) rally as PEPE is based on ETH’s blockchain.
Hedera (HBAR-USD)
In what is quite typical for the altcoin community, Hedera (HBAR-USD) went through a pump-and-dump cycle. It was due to misinterpreted news that BlackRock (NYSE:BLK) was going to tokenize its fund on HBAR’s hashgraph.
The fallout left HBAR’s price at its previous levels. But this presents an opportunity for those seeking out an undervalued altcoin. HBAR is in a long-term uptrend dating back to October 2023. It is still a massive 80% off its all-time highs.
All promising factors. But it must be stated that the profit potential of this undervalued altcoin is more a long-term play. It may take months to clear the recent BlackRock top. But it currently sits near the bottom of an upward channel, making it a good time to buy.
Even longer term, its all-time high was in 2021, so it would need even more time to reach those highs, and of course is highly dependent on market conditions remaining bullish for cryptocurrencies as a whole.
Near Protocol (NEAR-USD)
Near Protocol (NEAR-USD) entered a steep uptrend in January 2024 and is currently coiling up in a bull flag pattern. Given the length of this bull flag, a potential breakout could come fairly soon if technicals play out normally.
A breakout of this flag shows little resistance on the way to its 1-year high near $8.90. Expect a test of resistance around that price in the short to medium term. But long term, its all-time high sits above $20.
The rise in popularity of NEAR’s data availability level appears to have been powering the uptrend in recent months. But most promisingly of all, the NEAR protocol has the distinction of having great real-world adoption. This is partially due to its partnership with KaiKai, a rewards ecosystem.
This is along with many other of NEAR’s tentacles held in the crypto space – such as integrating with MetaMask, for one thing. NEAR’s current price makes it an extremely undervalued altcoin. Perhaps one of the most undervalued altcoins in the world currently.
On the date of publication, Sam Farnham did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
