As we have observed today, the wider cryptocurrency market, including Bitcoin, is enduring a downswing. This shift adds an extra strain on an already tense market sentiment. While Bitcoin was flying high at almost $31,700 last week, its zeal has steadily dwindled, evidenced by this week’s continuous falling below the 20-day Exponential Moving Average (EMA).
This drop is primarily linked to volatile sellers exerting a downward force on crypto prices. We find a stark contrast here when compared to the stock market’s recent surges driven by positive investor sentiments. In the broader economic picture, a divergence in trajectories between crypto and stocks is evident, largely owing to differing outlooks for interest rates and recession risks.
To some it may seem counterintuitive that as the the Dow Jones Industrial Average hit a record winning streak since 2017, Bitcoin showed depreciation by 1% over the last month. Moreover, while Bitcoin is just treading water at around $29,858, cryptos such as Chainlink, Chimpzee, Compound, DeeLance, and Stellar are emerging as lucrative investments due to their strong fundamentals and/or technical analysis.
Chainlink, in particular, surprised the market with a robust 20.91% surge recently, reaching a new 13-week high. Although today’s 2.67% price downturn somewhat tempered the bullish enthusiasm, the MACD histogram’s rise to 0.158 suggests that the bullish fervor is very much alive despite today’s price dip.
In contrast, the new kid on the blockchain, Chimpzee, is making a splash with a token presale nearing the $1 million mark. It has carved a niche for itself with various sustainable development initiatives such as planting trees and donating to wildlife conservation. Backed by its deflationary model, Chimpzee’s upcoming $CHMPZ token launch offers promising investment potential.
However, not all crypto stories echo such bullish sentiments. Compound, for instance, has struggled with regaining momentum after reaching a year-to-date high of $85.90 on July 16. The bearish signals from the RSI and the MACD suggest that traders should keep a close eye on Compound in the coming days.
On the other hand, DeeLance, a metaverse designed for freelancers, offers a promising opportunity with its presale raising over $1.59 million. The project’s prospects look appealing with its transparent and decentralized approach, addressing key issues like copyright and payment fraud in the freelancing world.
Lastly, despite Stellar’s recent price dip, its solid technical indicators suggest it could be preparing for its next upward journey. However, it is important for traders to keep the $0.1735 resistance level in sight and take a ‘buy on dips’ approach.
All said, while the crypto market weathers its current downswing, opportunity abounds in select cryptocurrencies. Savvy investors will keep a keen eye on the market’s many twists and turns as they explore opportunities for their capital. Just as a coin has two sides, the current market volatility opens the door to both risks and rewards.
Source: Cryptonews
