A subtle changing wind is floating through the crypto market this Friday as prominent coins like Bitcoin and Ether stumble on striking short-term resistance levels. Bitcoin, after failing to break away from an early August slump, lingers in the $26,400 vicinity. Ether trails slightly behind, hanging around the $1,620 mark, having been unable to break through its 21-day moving average.
Spurring the winds further are the impactful waves of robust US economic data that have been released this week, pushing US yields towards unprecedented highs in decades. A consolidation of the Empire State Manufacturing Index and Industrial Production spiking past expectations, paired with hefty Retail Sales data and hotter-than-projected inflation rates are fanning these market fluctuations. Consequently, these are impacting traders’ faith on an upshift in US interest rates projected by the Federal Reserve, manifesting in some hesitance on Friday’s crypto market.
As a result of these macroeconomic gusts, traders are shifting their attention to the less stormy waters of niche markets. Notably, coins such as XDOGE, a fiery new Dogecoin copycat, has climbed over 400% within 24 hours, skyrocketing its market cap above $300,000. However, the lack of liquidity lock leaves room for worrying potential pitfalls like a rug pull.
Another riser is the emotive EmotiCoin, touting itself as the pioneer of ‘elastic supply token’ that contracts its supply by 20% every four hours. Drawing in investors with its price pumps, its market cap has swollen close to $4 million. Despite unusual conditions like a 5% buy and sell tax, its security audit has triggered only four alarms, suggesting an overall stable profile.
Then we have a newcomer, MoonDAO token, known as $MOONY. Claiming to orbit around a mission to decentralize space, it has been fuelling investors’ interest with improved daily performance. Surprisingly, its recent spike wasn’t complemented with a trading volume surge – a red flag for bullish investors, indicating this upward trajectory may lack solid backing.
Alternatives in the high-risk-high-reward arena to these turbulent coins could be crypto presales, which entails purchasing tokens from burgeoning crypto projects to support their development. These tokens are typically sold at a bargain and can offer exponential gains to early backers. Savvy investors who can spot excellent teams and ground-breaking visions within these crypto startups chip in the promise of enticing risk/reward balance in their presale investment. Yet, we must underline, in the realm of crypto, one must tread with caution, it’s a high-risk venture. Straddle both sides: the potential for considerable profits and the reality of total capital loss.
Source: Cryptonews
