In the coming weeks, cryptocurrencies will attempt a recovery from the latest correction. Market confidence remains strong despite mainstream media’s efforts to defame Bitcoin. The all time highs of August attracted the attention of the world as more and more people flock to this limited, border-less currency. Corrections such as the ones witnessed on the 15th serve as an excellent opportunity to buy-in for those willing to get rid of fiat. This Summer, cryptocurrency markets experienced something similar: prices peaked and a major correction created uncertainty for a few weeks. Getting rid of fiat on the dips may seem counter-intuitive and is a new concept for the mainstream investor to adopt.
New cryptocurrencies are being created at an alarming rate and it is not surprising that countries and organizations are trying to step-in with regulations and warnings. Long term crypto holders know that these new ICOs are a cash-grab and are generally avoided. As a currency, there must be merchant adoption for it to hold value. When purchasing goods with cryptocurrency, the majority of merchants only accept Bitcoin. Shapeshifting coins into BTC is a 3rd party solution and is not considered merchant adoption.
Bitcoin, Ethereum, Litecoin, Monero, Dash and perhaps Neo are seen in the crypto community as having value on their own. Most alt-coins are speculative against Bitcoin and are either clones or tokens of the major chains.
Monero is often associated with dark markets because of its anonymity. As a cryptocurrency, Monero has the potential to dominate in the top 5 market caps. The privacy that Monero offers by default, as opposed to a feature like zk-SNARKs or PrivateSend, makes it a good candidate for a medium of exchange where one does not want their balance to be revealed at every transaction.
Price Speculation: Monero is holding strong in the 0.026฿ range and should continue to do so. My optimistic speculation on XMR is that there will be a small dip to 0.0248฿ and then continue strongly in the 0.033฿ range when cryptocurrencies regain momentum. 0.0204฿ is a possible low as well as 0.0148฿ for pessimists. Long term outlook on Monero is positive and it is still considered relatively cheap in comparison to Ethereum or Dash.
Neo suffered when the news from China surfaced but continues to hold value against Bitcoin and the USD. When prices drop, it is important not to panic-sell and strongly consider “averaging down” on a position or finding an entry if not already invested; buy the fear, sell the news.
Price Speculation: Neo could easily bounce from its current price of around 0.0055฿ to roughly 0.00457฿. I anticipate that it will settle around the 0.0051฿ mark until it starts moving again. Sell-offs can be expected around 0.00855฿ and again just under 0.01฿. Neo is still a good cryptocurrency and the outlook should be positive despite (regular) Chinese news about “banning Bitcoin”.
Litecoin followed the same fluctuations as most cryptos but dropped to nearly a third of its value from the beginning of the month’s highs of $94 to lows of $33 on the 15th. These fluctuations can be seen either way if you buy the dips; the opportunity to 3x and more should present itself in the near future.
Price Speculation: Litecoin fluctuation against Bitcoin was not as severe as against fiat. I expect LTC to make a quick jump up to 0.0153฿ and possibly dip to 0.0119฿ in the next few days. These fluctuations seem insignificant against bitcoin but represent nearly 2x their value against the US Dollar; this equates to a jump to $60 and a possible dip to $36.25. Litecoin remains a prominent cryptocurrency and has strong merchant adoption. A bullish trend could easily push LTC above $120 in the coming weeks but I anticipate it to settle around $65 until the market has had a chance to find its balance again.
Trading markets are volatile, never risk more than you can afford to lose. These are my own trading opinions and should be used as an example, not a guide. Always do your own research and chart analysis.
China banned bitcoin adn rest of cryptoss LOOOOOOOOOOONG time ago, cryptos is NOT legal in China always was that way.