The week starting July 11 presents some tough choices for altcoin market-bound investors. In this post, let’s take a look at the upcoming days’ route for 6 altcoins from analyst Josh Enomoto’s list.
6 altcoins to watch as the market recovers
Ethereum (ETH)
Ethereum reached the $1,300 region again on July 7th. It is currently trading at just over $1,000, which is psychologically significant. Interestingly, Coinpaprika.com reports that only a fraction (37%) of Ethereum investors are in the money. On the other hand, 48% is without money, while 15% is in money (neither profit or loss). To be fair, 52% of Ethereum investors are at least not losing money. So what would the psychology be if ETH started falling?
We must remember that Ethereum itself does not pay dividends. Therefore, there is no financial incentive to hold a losing crypto outside of high-risk crypto loan programs. However, the longer ETH goes nowhere, the more likely investors are to become discouraged.
Tether (USDT)
Stablecoins like Tether always try to be $1 stable to the dollar. However, they cannot always do this. For example, late last week the USDT price rallied to $0.9991 and peaked at $0.9996. So now stablecoins make money. However, investors who are not used to the extremely volatile market may consider converting some of the USDT back to fiat currencies.
The Terra Classic disaster has caused concern about a potential bank run in crypto. More importantly, Tether has yet to reach dollar stability. In many cases prior to the LUNC disaster, USDT had a higher peg than the dollar. As such, Tether losing strength at this critical point does nothing for trust in cryptos.
XRP
The SEC sued the Ripple company and its founders in 2020. If the commission beats Ripple in the lawsuit, it will have numerous consequences affecting cryptos. Unsurprisingly, the XRP price has been bearish for the past week and this week. To be fair, recent sessions show that the bulls are moving against XRP’s order book. However, it makes most sense to be cautious, as other mainstream cryptos have failed to show any upward movement.
Left (LEFT)
cryptocoin.com As we have reported, Solana is now the defendant, like Ripple. According to CoinQuora.com, a northern California resident sued the project for the unregulated sale of SOL tokens. According to the article, plaintiff “indicted Mark Young, Solana Labs, Solana Foundation, co-founder Anatoly Takovenko, Multicoin Capital Management and co-founder Kyle Samani and FalconX. The California resident says these organizations and individuals profit from the sale of SOL. Therefore, these entities violate the registration provisions of federal and state securities laws.”
The case reflects the fears of the aforementioned legal expert John Deaton, who believes that if XRP were to be recognized as a security rather than a virtual currency, “then there would be hundreds of class action lawsuits against cryptocurrencies in the future. Not only tokens or exchanges, but also supporters of altcoins may be subject to regulatory scrutiny.” While Solana doesn’t seem to display unusually severe volatility compared to other major cryptos, this is an evolving story to follow closely.
Monero (XMR)
Monero is a privacy-focused cryptocurrency. Monero’s goal is to “allow transactions to occur privately and anonymously”. Amid the increase in the number of blockchain-based projects, Monero stands out for its utility. Investors prefer XMR for anonymity. However, this feature was not enough to save XMR from the fall. According to the order book, between July 10 and July 11, sell orders (or solicitations) against buy orders (or offers) began to accelerate. Therefore, investors should be careful with their XMR speculation at this point.
Dogecoin (DOGE)
Dogecoin is the largest meme coin by market cap. However, based on on-chain data, the majority of DOGE investors (64%) have held their positions for over a year confirming that it is not just a meme. Investors who hold the second place for a period of between one month and 12 months (31%).
According to the logical deduction, only 5% of investors held it for less than 30 days. Therefore, when people talk about HODL, it is actually a value within the Dogecoin community. It cannot be said with certainty that this dynamic will raise DOGE higher. However, something to keep in mind if you need to speculate about cryptocurrencies.
