After yesterday’s massacre we take a look at the current players who are trying to rally the bleeding cryptocurrency market. We will also discuss why #stableCoins and #FinTech backed currencies managed to weather the storm.
The blood bath continues
It was another day of major losses across the board with BTC and ETH losing ground again. At 17:00 GMT+2 we saw the first rally after BTC hit one of the prime support levels at around $4,200, quickly rallying back up to the $4,500 mark and stabilising there for the time being.
ETH on the other hand at one point dropped to just under $120 which has not been recognised as a support but bounced back to the high $130’s, very far from the lofty heights it was trading at in the last couple of months.
Other altcoins suffered similar fates, notably BCH (Bitcoin Cash) which was down then up and is currently trading at a bit over $200 which is another loss of around 30% today.
Verdict: Short the rallies and long the supports, but small investments are suggested. We still do not see any indication that there will be a market reversal or a bullish run and therefore I would suggest to wait this one out.
“People have panicked. But there’s no fucking need. We’re in a bear market. They suck, yes, and not like a hooker with no teeth”
John McAfee – 2018
Ripple (XRP), Stellar (XLM) and Stable Coins
Surprisingly, it is clear that although they have also lost some ground in their own valuation, compared to the market the FinTech backed XRP and XLM are opposing the wave of the altcoin scene and Stable coins have managed to stay relatively stable. It would seem that these two have proven that even in a mass panic sell there are forces at play that can stabilise the value of a coin, which can be taken as either a positive or a negative, depending on which side of the fence you sit when it comes to institutions having a say in the cryptocurrency sphere. Whatever the case, XRP and XLM seem to show the best prospect for long-term investment (#hodl).
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