Over the past week, the cryptocurrency market quotes have collapsed. Bitcoin is down 18% and is trading at $ 45,000 at 13:45 GMT, according to CoinGecko. The Ethereum price fell by 10% and now stands at $ 3.5 thousand, while Binance Coin fell by 17%, to $ 526.
The experts explained how to open long-term positions in such a situation and which tokens to pay attention to.
Healthy correction
The current market decline is a healthy price correction, which is unlikely to lead to global sales, said leading analyst at 8848 Invest Viktor Pershikov. According to him, the fundamental factors affecting the market include the role of Elon Musk and Tesla in the current speculations on Bitcoin and the growth in coin sales on the largest crypto exchanges. In the near future, these factors will continue to play a role, so the local decline may persist, the analyst predicts.
Earlier, Tesla CEO Elon Musk criticized the main cryptocurrency and questioned its decentralization. As an argument, Musk cited the recent situation with power outages in China, which reduced the hashrate of the main cryptocurrency network by 35%. This gave rise to rumors that Tesla may start selling bitcoins. But Musk later stated that Tesla did not sell cryptocurrency.
Nevertheless, Elon Musk’s verbal interventions, most likely, will be taken into account in the further movement of quotations, the head of the data analysis department of CEX.IO Broker Yuri Mazur is sure. In his opinion, market participants managed to form some immunity from the statements of media persons, and will probably continue to hold their positions, paying less attention to conversations. The real risk for crypto assets remains the actions of the US authorities, and if in the near future there is again news criticizing cryptocurrencies from, for example, US Treasury Secretary Jannette Yellen, the bitcoin rate may drop to $ 38-41 thousand, the analyst said.
What tokens to buy
For bitcoin, the closest target of decline is the level of $ 40 thousand, most likely the rate will be slightly below this mark, so it makes sense to return to buying coins no higher than $ 40 thousand, recommends Viktor Pershikov.
Of the altcoins worth paying attention to, the analyst singled out Ripple’s XRP, which benefited from speculations on Elon Musk and bitcoin as a less “toxic” cryptocurrency. It is also worth taking a closer look at Ethereum, which is aiming at the level of $ 5 thousand and against the background of fundamental positive in the project it may be better than the market, said a leading analyst at 8848 Invest.
Now, according to Yuri Mazur, Cardano, Uniswap, XLM and XRP tokens look stable. The strengthening of Cardano last week is due to news of improved network infrastructure, the analyst said. In just a week, altcoin has risen in price by almost 30% and took the fifth place among the largest cryptocurrencies in terms of capitalization.
Uniswap is a flagship DeFi project that allows the coin to remain stable even during turbulence, explained CEX.IO Broker, head of data analysis. According to him, XRP, paradoxically, is being kept afloat by news of a litigation between Ripple (the issuer of XRP) and the US Securities and Exchange Commission (SEC). Market participants have already taken into account all possible negative scenarios for the coin in the price, so it shows a high level of resistance to negative. XLM is a sister project to Ripple, therefore it is fundamentally supported by investors as a possible replacement for XRP, the analyst added.
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