Are there any small currencies with investment potential?
The recent market has been hovering, and BTC has basically fluctuated below $8,500. Neither the external environment nor the small environment within the currency circle have happened to be particularly conducive to the market.
1. The external environment eased, and the risk aversion sentiment declined; internal waves remained calm
As far as the general environment is concerned, the Maoyi war dispute that has been hanging over the heads of China and the United States has come to an end for the time being, because the impeachment issue that the protagonist of the Maoyi war has recently encountered is too troublesome, and he needs to ease the external conflicts so that he can Focus on dealing with internal affairs, so I have to temporarily show favor on this issue.
The Maoyi war has always been the focus of the political and economic relations and development of the two countries. The uncertainty caused by it has a strong impact on the stock markets and economic operations of the two countries. During the period of stability, the risk aversion sentiment has been released considerably. The recent decline in gold and silver is the best explanation for this.
In the currency circle, for the time being, no major news about the development of various projects has been released, and the overall situation seems calm.
Therefore, in the absence of both external and internal positive stimuli, the current market may continue for a while.
2. Trend analysis of two typical small currencies
Some of our readers asked: After a period of consumption and see-saw, the bubble has almost been squeezed. Is there any potential small currency that can recover some blood?
This time, the bear market that started at the beginning of 2018 has come to the present. After the Spring Festival this year, it launched a larger roller coaster rebound: first all the way up and then gradually down. After the recent decline, it is true that the accumulated bubbles in the market have been squeezed out a lot.
Judging from the market as of the time of writing, this rebound has raised BTC and Ethereum from their lows by 1.4 times (from $3,200 to $8,200) and 1.25 times (from $80 to $180) respectively. .
Let's look at two examples:
Let's look at two examples:
1) Trends of coins ranked around 140
The picture above shows a coin that ranks around 140. Before the start of this round of rebound, the price of this currency was at a minimum of around US$0.3.
It can be seen from the figure that in this round of rebound, it reached $0.5 on June 3, then reached a high point of $0.6 on August 24, and then fell to $0.2 in the subsequent rebound. Dollar. In fact, after it reached $0.6, it fell all the way with the increase in trading volume, which proves that a large number of currency holders have sold out.
From the once low of $0.3 to the current $0.2, it hit a new low.
2) Trends of coins ranked around 500
The picture above shows a coin that ranks around 500. This coin was once a well-known ICO project in China in 2017. Its lowest price was around $0.004 before the current round of rebound started.
It can be seen from the figure that in the current round of rebound, it reached the highest point of $0.031 on May 25, and then fell even lower in the subsequent rebound, and the current price is about $0.007.
From the previous $0.004 to the current $0.007, although it seems that this coin has risen by 75%, we can see that the transaction volume of this coin is extremely small and there is almost no liquidity.
3. Stop having illusions about most altcoins, and funds should be mainly placed in mainstream coins
The two coins I chose are neither high nor low in the rankings, and they are basically typical examples of altcoins. Both coins reflect the same trend:Not only did it fail to recover and stabilize from the previous lows like BTC and Ethereum in this wave-like rebound, but in the rebound market, currency holders continued to sell and leave the market, causing the currency price to hit a new low in the bear market or It has reached an embarrassing price with almost no trading volume.
These two coins are not special cases but representatives of many altcoins. Readers can search for various altcoins on coinmarketcap to see their price trends and trading volumes, and they will find that they are basically the same.
I still advise our readers and some investors,The vast majority of altcoins will eventually be eliminated in rounds of shuffling. Don't hold out hope for most altcoins, but put the main funds on mainstream currencies.
