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Despite the Pull Back, These Coins Are Still Gaining
- The crypto market experienced a significant crash with major cryptocurrencies like Bitcoin, Ethereum, and others losing up to 10% in value.
- Some, like ADA and SOL, still show a positive weekly trend, with market analysis suggesting potential for quick recovery despite the risks associated with ‘buying the dip’.
- Although the crash wiped out significant investments, several Altcoins like INJ, IMX, KCS, and TIA are rallying.
- Avalanche (AVAX) notably has surpassed Dogecoin due to its increased on-chain activity and growing DApps popularity.
Crypto Crash – A Flash in The Pan?
The crypto market has crashed – and all major projects have suffered losses. Bitcoin (BTC) lost around 8% but has recovered somewhat since.
Other major assets such as Ethereum (ETH), Solana (SOL), XRP (XRP) and Cardano (ADA) have also lost ground, with some losing as much as 10% in a couple of hours. As can be seen from the chart, the weekly trend is still positive for some like ADA and SOL.
While Investors may be tempted to “Buy the dip” – caution is advised. The strategy is not always a good one because it assumes that the price of an asset will recover after a decline, which may not happen if the asset’s value continues to deteriorate due to fundamental issues or market changes. Additionally, this approach can lead to increased risk exposure and potential losses, especially if the investment is made without thorough research or consideration of broader market trends.
However, while the ‘Fear and Greed Index’ remains in greed territory, market intelligence platform Santiment is suggesting a quick recovery.
Some Altcoins Continue to Rally – But for How Long?
While the crash wiped out up to US$90 million (AU$136 million) in long-Bitcoin positions, quite a few Altcoins have continued to make gains.
The highest gainers over the past 24 hours are Injective (INJ), Immutable (IMX), KuCoin Token (KCS) and Celestia (TIA) – all these lower cap coins have gained upwards of 20%. However, as bets on smaller altcoins are arguably riskier, savvy investors may have their eyes peeled on Avalanche (AVAX).
AVAX not only managed to sustain its rally but also further made its way up the ladder. With a whopping 18% in 24 hours, AVAX managed to push Dogecoin (DOGE) down to the tenth spot.
Avalanche has been in the spotlight quite a bit recently with some exciting developments. Avalanche’s recent performance is likely the result of increased on-chain activity, the growing popularity of its DApps, innovative technical features, and considerations for potential investors in the face of market risks and competition.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
