The Web3 tokens to buy in 2024 are those with bullish chart structures, particularly breakouts following large and long falling wedge patterns.
Related – Analyst: Crypto Alt Season 2024 Started in February
In this week’s research note to premium members, we wrote:
Web3 tokens may revive sooner rather than later.
While Web3 has been a lagging crypto segment, it might soon start leading again.
Web3 tokens – a diverse crypto segment
While Web3 has been associated with NFTs, the reality is that NFTs are simply one of the many functions within Web3. Because of this association, many tend to think of Web3 as a hype from a few years ago.
We don’t believe that Web3 was a temporary hype. While it’s true that NFTs have been overhyped, they also serve a purpose (read: utility).
Web3 functions always require a blockchain wallet which enables unique ownership of digital assets. There are plenty of use cases with digital assets that live on a blockchain wallet:
- Blockchain gaming which differentiates from traditional gaming by the uniqueness of digital assets (gaming elements).
- Music on the blockchain which eliminates the middleman, and rewards content creators (musicians) better than in traditional music ecosystems.
- Social media content creators can have instant and fair rewards with higher yield compared to traditional content networks in which the platform makes most money.
Digital assets, with proven and unique ownership, is what characterizes Web3 use cases.
Web3 tokens – the leading indicator
By far, the largest Web3 crypto project is Polygon. Its native token, MATIC, is a top 15 token in terms of market cap.
MATIC was a 100-bagger, a few years ago.
In recent years, it has been consolidating.
Visibly, the consolidation is now coming to an end. The way we interpret this – the revival of Web3 may be upon us.
Web3 tokens to buy in alt season 2024?
Alt season 2024 is here.
With the breakout of the alt coin market against BTC and ETH, it is clear that multiple crypto segments will start outperforming in the near future.
However, as said many times, this is not a bull market like in 2020/2021, when all tokens went up concurrently. This edition of alt season is a hidden bull market:
- AI coins broke out, in February, as forecasted.
- DePIN tokens may be next.
- Web3 may be next.
The total alt coin market cap is moving higher, above the critical $505b mark, implying a breakout in altcoin market cap terms.
Web3 tokens – the former leader
Sandbox rallied 10-fold in Oct/Nov of 2021.
It was the ultimate Web3 token, back then.
As seen on below chart, SAND came down a lot but is about to complete a bottoming formation. This confirms the conclusion we derived from MATIC’s chart – a Web3 revival might be here.
Note, however, that the former leader (Sandbox) is not leading this time around.
Web3 tokens to buy in 2024 – the leader
One of the emerging leaders is Arweave who announced a partnership with Meta recently.
While the intention is not to analyze its projects and functions, we want to focus on price and profit potential, through chart readings.
Arweave clearly has a much stronger chart setup than Sandbox. It is also very different compared to MATIC. What characterizes Arweave’s chart is the falling wedge structure (green lines).
Web3 tokens to buy in 2024 – the bullish patterns
Because of the insights outlined above, we believe the tokens with chart setups like the one below have tremendous upside potential – the higher the falling wedge chart pattern, the higher the upside potential.
The chart above might be one of the strongest falling wedges in the Web3 space.
Readers may look for similar Web3 charts. In case you prefer to outsource the research work, you may find value in the Web3 selection we featured in our recent crypto research note: Short Term Cycle Complete, Rotation to Web3 Underway? (get your log in here for instant access).
While there are many Web3 tokens out there, the most promising ones in terms of fundamentals combined with the longest and strongest falling wedges will deliver most profits to investors, is our thesis.
