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cryptocurrencies: These cryptocurrencies have fallen 40% in 2 weeks; is it time to buy?

cryptocurrencies: These cryptocurrencies have fallen 40% in 2 weeks; is it time to buy?
Written by publisher team

New Delhi: The cryptocurrency market has had a bumpy ride lately, with most high-quality digital tokens losing up to 40 percent of their value in the past two weeks.

Excluding stablecoins pegged to the dollar, the cryptocurrency has fallen by as much as 40 percent in just two weeks. Ethereum shares are down as much as 39 percent. It was followed by XRP and Solana, each down 36 percent.

Dogecoin, Cardano, and Uniswap are some of the other coins that have given up a third of their values ​​in just two weeks. Avalanche, Binance Coin and Polkadot are all down up to 30 percent each. Leading cryptocurrency bitcoin is down 21 percent.

Analysts attribute this fall to several factors, including the spreading weakness that global stock markets have experienced in recent weeks.

“The panic in the marketplace drove profits from major investors, leading to selling across the retail sector,” said Edul Patel, CEO and co-founder of Mudrex.

Prior to that, cryptocurrencies experienced a linear rally. However, markets are bound to go through such cycles.

There is mixed sentiment in the market, said Hitesh Malviya, founder of itsblockchain.com. “A few analysts are looking at new lows and anticipating another downside cycle, while others are anticipating another bounce.”

“There are some currencies that have fallen more relative to Bitcoin. They can recover when Bitcoin finds a bottom, and bounces back from support levels,” Malviya said.

While the cryptocurrency market is showing some signs of recovery, the influx of negative news from China and other countries is weighing on investor sentiment. Market watchers say these digital tokens should see a strong comeback when the dust settles.

Patel is also hoping for a quick and sharp rebound in the market, but said the timing is unpredictable. Investors are advised to get a long-term view of the tokens they own.

“Any investor with a high risk appetite in cryptocurrency should be satisfied with high single digit returns per month,” Patel said. “That’s more than 80 percent of your annual revenue, which roughly doubles your capital every year.”

Some analysts suggest that long-term investors should look for average positions, while short-term traders need to set strict stop-losses to avoid further losses if things go south.

Patel said that the larger cryptocurrencies are available at a decent discount. “Random purchases spoil the party and destroy wealth,” he added.

He said investors should not try to grab fallen knives and stay away from random altcoins, where euphoria is created and destroyed every day.

Malviya expects ATOM to recover faster than others and finds the NFT space an attractive investment option. “NFTs are showing their strength against the bitcoin dump, and are already starting to recover from the dips,” he said.

Larger altcoins are currently well priced. Patel said that some other smart contract tokens can also be viewed.


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