Is It Time To Pack Up & Sell : Staying Calm During Cryptos Storm⚖️
Sticking to a trading strategy and diversifying investments can help weather market volatility📌
The crypto market has experienced a downturn even after the highly anticipated Bitcoin halving event.
Key Takeaways🍿:
Sticking to a trading strategy and diversifying investments can help weather market volatility📌
Embracing volatility and keeping emotions in check are important for making rational trading decisions🧘♀️
Identifying good entry points, executing strategic plays, and remaining adaptable are key strategies for buying the dips in a bull market✅
Historically, halvings have sparked a positive market sentiment and major bullruns. However, the crypto market continues to show signs of a major pullback, with BTC prices near the $60000 mark.
Continuous selling pressure has sparked worries of a possible downturn towards the support zone near $58,000. Increasing regulatory pressure on cryptocurrencies may have contributed to this, but previous halvings have consistently registered a volatile "sell-the-news" occurrence in the short term.
Market analysts anticipate that prices may dip further before the market recovers especially due to buying pressure from institutional capital through ETFs. Whatever the case, it’s important to stay informed about the shifting dynamics that determine the market trajectory.
How to Remain Calm In Times of Panic
Generally, dips are good for building heavier positions on high-conviction plays in your portfolio or gaining good entries into new investments.
But that’s easier said than done. It’s quite difficult to resist the urge to sell at a loss during the red market days because what if your investments dip further?
To avoid losing capital due to fear and anxiety, every crypto investor must learn to HODL their holdings. Some strategies to help you remain calm in times of panic are:
Stick to your trading strategy: Whether you're day trading or swing trading, having a clear strategy is crucial. Define your entry and exit points, set stop-loss orders, and stick to your plan even when emotions run high.
Diversify your holdings: Spread your investments across different cryptocurrencies and sectors within the crypto market. This diversification can help reduce the impact of volatility on your overall portfolio.
Embrace volatility: Volatility is a double-edged sword in the crypto market. While it can lead to significant gains, it can also result in steep losses. Accepting volatility as part of the game can help you maintain composure during turbulent times.
Keep emotions in check: Emotional decision-making is a common pitfall for traders. Avoid making impulsive trades based on fear or greed. Stick to your strategy and rely on data and analysis rather than emotions.
Stay informed but avoid overload: Keeping up with market news and trends is essential, but too much information can lead to analysis paralysis. Focus on high-quality sources and filter out the noise to make more effective decisions.
Buying The Dips In a Bull Market
Knowing when to buy the dips can be a smart strategy for riding the market's upward wave and maximizing potential gains.
When buying new coins, it is crucial to be aware of token vesting and unlock schedules, as these can cause price dilution and impact the token's value. For example, Arbitrum bears a good investment potential. But only 26% of the supply is in circulation. Future unlocks will most likely lead to token dilutions and a negative price impact in the short term despite maintaining its long term value in the market.
Here’s how you can go about buying the dip:
Identify good entry points: Use technical analysis tools like moving averages, trendlines, and indicators such as the Relative Strength Index (RSI) to identify trends and oversold conditions. Look for key support levels where the price has bounced previously, and consider trading volume and market sentiment. Plan your entry and exit points in advance, practice patience, and always prioritize risk management by setting stop-loss orders.
Dollar Cost Average: Split your desired position into equal increments that can be regularly deployed into the market giving you an average entry rather than a lump sum investment.
Execute strategic plays: Strike when the iron's hot – buy when the price dips, but ensure the Moving Average (MA) 9 maintains its position above the MA 200. This alignment indicates a strong trend, increasing the likelihood of a rebound. The MA is a statistical calculation used to analyze data points by creating a series of averages of different subsets of the full data set. It is often applied to the price of an asset over a specified period of time, such as 50 days or 200 days. It smooths out fluctuations in price data to reveal the underlying trend, helping traders identify support and resistance levels and potential trend reversals. Essentially, it represents the average price of an asset over a defined period, providing insight into its overall direction.
Lock in profits: Move swiftly to close trades, securing gains before the market dynamics shift. This proactive approach mitigates the risk of missing out on potential profits.
Remain adaptable: Stay flexible and adapt the strategy to suit different cryptocurrencies and market conditions. This versatility ensures that you can capitalize on opportunities across various assets.
While this strategy is not foolproof, it's shown a commendable level of success for many traders. It’s important to practice diverse strategies to find out what works best for you.
Buy The Dip Shopping List: What’s In Our Basket?
When it comes to buying the dips in a bull market, having a carefully curated shopping list of promising projects can make all the difference. Here's what's in our basket:
1. Oraichain (ORAI)
MC: $185.1m
Current Price: $11.63
With its focus on AI-powered oracle solutions, Oraichain stands out as a leader in the space, offering secure and reliable data feeds for smart contracts.
80% of the maximum supply of ORAI are in circulation.
2. Vectorspace AI (VXV)
MC: $22.8m
Current Price: $0.60
Leveraging advanced algorithms, Vectorspace AI provides unique datasets and analytics solutions, catering to the growing demand for AI-driven insights in various industries.
Currently, 75% of VXV is in circulation.
Learn more about Vectorspace AI
3. NumerAI (NMR)
MC: $156m
Current Price: $24.63
NumerAI disrupts traditional hedge fund models by crowdsourcing predictive models from data scientists worldwide, creating a decentralized ecosystem for AI-driven investing.
Only 57% of NMR are in circulation.
4. OriginTrail (TRAC)
MC: $311m
Current Price: $0.76
As a leading protocol for supply chain traceability and data interoperability, OriginTrail empowers businesses to transparently track and share supply chain data, enhancing efficiency and trust.
Only about 20% of TRAC remains locked.
5. COTI (COTI)
MC: $170m
Current Price: $0.10
COTI revolutionizes digital payments with its scalable and feeless network, enabling fast and cost-effective transactions for businesses and consumers alike.
64% of COTI is in circulation.
6. Synthetix (SNX)
MC: $773.5m
Current Price: $2.40
Synthetix pioneers decentralized finance (DeFi) by offering a platform for creating and trading synthetic assets, opening up new possibilities for asset diversification and trading strategies.
97% of SNX are in circulation, with about 50% being staked.
7. Nuklai (NAI)
MC: $5.5m
Current Price: $0.017
Nuklai is an innovative layer 1 blockchain infrastructure designed to host a collaborative data ecosystem. This platform aims to fuel the next generation of AI and Large Language Models (LLMs) with world-class data, supporting advanced technological development and innovation.
A total of 66.7% of NAI are still locked. Next token unlock is scheduled for 17th May. 2.91% of the total supply will be unlocked.
8. Karrat
MC: $39.5m
Current Price: $0.45
The KARRAT protocol is a decentralized gaming infrastructure layer, supported by the $KARRAT token and driven by a truly decentralized community. This protocol embraces a shared vision that integrates gaming, entertainment, and AI products, catering to the needs of the new era in digital interaction and innovation.
9. Pepe (PEPE)
MC: $4.6BN
Current Price: $0.00001114
Capitalizing on the success of meme coins like Shiba Inu and Dogecoin, PEPE is a deflationary memecoin launched on Ethereum. Created as a tribute to the Pepe the Frog internet meme, which gained popularity in the early 2000s thanks to Matt Furie, PEPE aims to leverage this cultural phenomenon.
100% of PEPE supply is in circulation, therefore investors don’t need to worry about token dilution.
It’s important to note that this research was written for the sake of education and pure entertainment value!
Please DYOR on every project, and remember, this is not investment advice🙏
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