Posted October 13, 2021
By Jonathan Rodriguez
CRYPTO ALERT: 3 Little-Known Coins About to Break Out
I'm J-Rod and welcome to Stocks That Rock.
Each week, I turn up the volume on a breakout stock that will rock your retirement account.
And you know what...
I'm thinking I may have to change the name of my column.
After last week's video on my top three breakout cryptos...
You've been sending me messages like CRAZY to keep covering crypto.
So today, I'm going to bring you even deeper into my crypto analysis...
And reveal the top 3 cryptos on my watchlist — before they break out!
It's no secret...
Stocks have been getting their asses kicked over the last few months.
And while I expect stocks to reverse higher this month...
Crypto has been cruising the whole time — and crushing stocks for the better part of three months.
How bad is the beating?
Bitcoin is up 55% since July and Ethereum is up 67% ... compared to a 2% gain for the S&P over the same period.
In fact, Bitcoin just broke its recent downtrend with some serious force behind it.
And as I showed you last week, some of the smaller alt-coins have seen even BIGGER gains in stocks' time of darkness.
Now I expect crypto's outperformance to continue through year-end.
And to set you up for success...
I'm going to break down three charts of cryptos that I believe will be the next big breakouts.
First up, we're taking a look at Polka Dot, crypto ticker DOT
Polkadot is the 8th biggest crypto by market cap at $34.5 billion.
Founded by Dr. Gavin Wood, the former chief technology officer of Ethereum...
DOT is the "blockchain of blockchains" allowing cross-asset crypto transfers...
And protecting users from meddling by central authorities & internet monopolies.
So if you'd like a little freedom with your finance, Polkadot is your pal.
Put simply, DOT is hot, my friend!
The coin has more than doubled in the last three months.
And it's ready to break out to the next level.
Here's why I'm so certain...
One great chart indicator that traders like me use to gauge the strength of an asset's momentum is relative strength index.
It's an oscillator that tells you how strong a stock's rally or decline is based on its price action over the last two weeks or so.
A value above 70 tells you that the asset is overbought and could pull back as it cools off.
And a value below 30 tells you that the asset is oversold and could reverse higher.
And something that I look for when I'm looking for new trades is when an asset breaks out of an RSI trend, just like I do with price.
Well last week, DOT proved its latest momentum move is for real with an RSI breakout.
I also love that the coin just had a golden cross…
Where its 50-day moving average crossed above the 200-day moving average...
With price holding strong above both averages.
And now, DOT is gearing up for a potential upside breakout of its five-month downtrend.
On a breakout, I think the crypto could easily make a move to $50 — an upside gain of nearly 50%.
Alright next up, we've got EOS, which is ticker EOS.
EOS is a crypto platform that allows developers to build decentralized blockchain apps.
This coin is another momentum monster that's up more than 25% since the end of September.
And I think things are just getting started!
As you can see, on its weekly chart...
EOS broke its downtrend channel extending from the coin's May high through October.
And like Polkadot, the coin broke out of its RSI downtrend at the same time — signaling strong conviction behind the current rally.
Now I'm thrilled about these big moves...
But the coin still has a little work to do in the short term before it really takes off.
Specifically, EOS' 50 and 200-day moving averages are still acting as points of resistance...
But when the coin does re-establish dominant support over these two price averages...
I think EOS will push to $7... which represents an upside of about 47% from where the crypto trades now.
Last but certainly not least...
We've got VeChain, ticker VET.
VET is a blockchain-powered supply chain network that aims to boost transparency and reduce transaction times.
And VET has its sights set on a big-time breakout.
Along with the other two cryptos we've looked at today...
This coin is on fire.
It also boasts a doubling in price in the last three months.
And momentum for VET has definitely swung to the upside.
You got an upside RSI breakout for VET early in October.
And you can see how that really kickstarted the coin's recent rally.
Over the weekend, you can also see that VET pushed through its 200-day moving average on an intraday basis.
So VET's on the verge of a breakout.
And when it does bust through the ceiling at the 200-day ... Look for this coin to make a run to $0.16.
Which represents a significant upside from where the coin trades now.
So to sum everything up, I expect crypto's outperformance over stocks to continue well into 2022.
And today, we looked at three solid plays for you to keep an eye on:
- Polkadot, ticker DOT
- EOS, ticker EOS
- VET, ticker VET
These coins are on the verge of big breakouts… and could hand you swift profits of 50% or more.
Thanks for watching today's video.
As always if you dig the content, please hit the like button and subscribe to the Rich Retirement TV YouTube channel so you never miss out on these videos.
And for Rich Retirement TV, I'm J-Rod and I'll see you next time.
Senior Analyst, Rich Retirement Letter