Going to the moon is a wonderful thing for cryptocurrencies but what goes up must come down, at least temporarily. Markets correct and trends reverse, this is a natural element to all traded entities, whether they are stocks and commodities, or currencies and digital assets. The hysteria and panic have already started on crypto social groups as most of the participants are newbie traders reacting to FOMO. The hardcore ‘hodlers’ will not be worried, in fact, they will be searching for buying opportunities in the dips.
Bitcoin started the digital avalanche when it came off its record high of just over $20,000 last Saturday. From then on it was all downhill as the crypto daddy slid back over 30% to its current level hovering just above $14,000. The naysayers are already out in force and ‘crypto crash’ will be seen in the headlines over the coming day or two.
Nearly all of the altcoins have followed suit during the Asian trading session this morning. Bitcoin Cash, Ethereum, Litecoin, NEO, Dash, Iota, Cardano and Bitcoin Gold have all shed double-digit percentages off their price. Again there is no need to panic, most of them are correcting from record price peaks and they are nearly all way up at the same time last month.
According to coinmarketcap.com only one of the top ten cryptocurrencies by market capacity is up trending while the other nine are showing red negative numbers.
Ripple has made a remarkable upsurge in value reaching an all-time high of $1.35 just a few hours ago. It has surpassed Bitcoin Cash in the charts and is now the third largest cryptocurrency by market cap with $48 billion at the time of writing. XRP has made monumental gains in the past 6-7 months rising from $0.05 back in early May to over a dollar today, representing an increase of over 2500%.
The news has been good for this altcoin recently with a number of banks in Asia adopting it for trials of blockchain based inter-bank transfers to replace the current slow, expensive and archaic Swift system. Asians have been bulk buying Ripple causing it to surge while the rest are sinking.
Two other altcoins that are showing green in a sea of red are Komodo and Lisk with Electroneum starting to make moves based on endorsement by John McAfee. KMD is up around 300% for the week trading at just over $11 and not showing signs of following all of the others in the bear market. LSK is also performing well up around 140% this week to $22.
Buying opportunities will arise and altcoins will correct, it is the nature of the market, albeit things happen a lot quicker in the crypto-land!