The macroeconomic landscape is causing a stir in the cryptocurrency sphere, where geopolitics and economic reports are surprisingly influential. This Monday’s apprehension regarding the escalating situation between Israel and Palestine has pressed down heavily on crypto values. While BTC had a decline of just over 1%, Ether (ETH) fell in excess of 3%, with a last report putting it at $1,580. The descent of ETH was exacerbated even more by an unexpected $2.7 million worth sale of tokens by the Ethereum Foundation on Uniswap.
Ether dropped significantly from both its 21 and 50-day moving averages and snapped its rising trend since early autumn, suggesting a gloomier near-term technical outlook. This nosedive has also raised speculations about a potential break below the $1,550 level. Meanwhile, Bitcoin remains resilient in its recent upswing, stoking hopes of a durable advance beyond $28,000 in the coming weeks.
An interesting shift of attention from geopolitical issues to economic indicators will occur in midweek with the release of the US Producer Price Index and Consumer Price Index inflation data. Lower US yields observed on Monday due to a flight-to-safety scenario could reverse back towards long-term highs if the inflation data indicates excessively high levels and thus form a hindrance to cryptocurrency performance.
In consideration of these significant risks to the short-term prospects of leading cryptocurrencies, traders are venturing into the less liquid market of minor digital currencies and meme coins for potential profitable short-term investments.
Among these, the spotlight is on Versus ($VS), a relatively new cryptocurrency with an astounding surge of over 200%. Despite the bullish performance, it harbours hefty tax implications and potential modifications that could turn sour, prompting caution among investors. Similarly, Only Possible on Ethereum ($OPOE) and Qlindo Realestate ($QLINDO), despite their recent sizable rallies, have raised eyebrows for various issues. Their concerning aspects include dubious token contracts, low trading volumes, and liquidity issues.
While attractive for their prospects of delivering massive returns, such coins are incredibly risky and require rigorous scrutiny as most lack a solid value proposition. One possible alternative for high-reward prospects within the crypto sector could be participating in crypto presales. These events allow investors to purchase tokens of budding crypto projects to fund their development, often at a lower cost, and have a considerable history of generating significant gains. Early investors can reap rewards if they can pinpoint these promising projects with dynamic teams and vision.
Crypto remains a high-risk asset; therefore, the information here is for educational purposes and not meant to be financial advice. Investors are duly reminded that like every investment, crypto comes with a risk of losing all your capital.
Source: Cryptonews
