The post Is the Bitfinex Wick at $56K for BTC a Leading Indicator, or are Low Market Cap Cryptos a Better Buy Still? appeared first on Coinpedia Fintech News
Bitcoin continues its drawn-out period of consolidation as it trades inside the April range between $31,000 and $27,000. Lately, the cryptocurrency has been trading toward the lower boundary of this range as the buyers attempt to defend the $27,000 level following the announcement from Binance that they would suspend BTC withdrawals due to network congestion.
Nevertheless, analysts are starting to be hopeful for BTC after an immense wick on the Bitfinex exchange briefly pushed the price of the number one ranked cryptocurrency to $56,000. According to market dynamics, the market will typically move to fill wicks as they represent inefficiencies within the market that need to be filled.
Meanwhile, other prominent analysts suggest that investing in lower market cap cryptos is still a better buy right now because they provide the opportunity for higher returns. Keep reading to find out which three tokens analysts predict to be the best buys today.
Bitfinex Wick: Can Bitcoin Rise to $56K To Fill It?
Bitcoin continues its period of consolidation as it remains stuck inside the trading range set out in April. The bull run for the cryptocurrency has somewhat stalled as buyers start to become exhausted, causing the market to move sideways. Despite the sideways action, traders are hopeful that the market can still recover due to the fact that the bears are struggling to push the price lower.
One fundamental piece of news extending the consolidation period is Binance closing BTC withdrawals amid congestion on the Bitcoin network. On May 7th, over 400,000 transactions were waiting to be processed in the meme pool – the waiting area where transactions go to be verified by nodes on the network. As a result of the congestion, Binance announced that they would suspend withdrawals for a couple of hours to help the transactions be processed.
Fortunately, Binance BTC withdrawals are active again, but the increased network usage is causing transaction costs to increase and creating a bearish narrative for the crypto.
Despite this, some analysts are expecting some huge swings higher after a wick on the Bitfinex exchange caused the price of BTC to surge as high as $56,000;
Wicks in a candlestick show price rejection points and signal the unsuccessful movement for an asset. They show inefficiencies within the market, and usually, the market heads in the direction of the wick, leading many traders to be hopeful that BTC might see a bullish revival.
In addition to the incredible candle wick, it seems that Bitcoin whales are starting to accumulate during the sideways movement. According to data from Glassnode, addresses holding at least 1,000 BTC have been accumulating the asset during May;
With whales accumulating, it’s usually a signal that a higher price surge is incoming.
Lower Market Cap Coins are Probably Still a Better Buy With Higher Returns
Despite the optimistic suggestions, other analysts believe that lower market cap coins are probably still a better buy as they provide the opportunity to earn higher returns – although a higher risk is associated with lower market cap coins.
In particular, three lower market-cap coins have been making waves across the industry. Let us introduce Spongebob Token, AiDoge, and yPredict as they present the perfect entry opportunity for potential 100x gains.
Spongebob Token – Taking the market by storm through viral memes.
Spongebob Token is the latest memecoin sensation that’s shocking the entire industry. Similar to PEPE, Spongebob Token is a memecoin with zero utility, but the FOMO behind the project is driving the price higher. The token launched directly on the Uniswap DEX without any presale on May 4th, when the team injected over $2 million into the liquidity pool. A mere four days later, SPONGE had exploded higher, producing a 3700% return, pushing the market cap from the initial $2 million level to reach as high as $96 million in the process.
The market has somewhat cooled off a little after Binance sent shockwaves of uncertainty through the industry by briefly halting BTC withdrawals, sending the entire industry plummeting – including memecoins like PEPE, TURBO, and SPONGE. Despite this, the retracement for SPONGE has provided the perfect entry opportunity for those still sitting on the sidelines, looking for an excellent price to invest.
Spongebob Token describes itself as the Krabby Patty of memecoins – referencing the legendary TV show from which the memecoin is inspired. The project was born to create a viral moment in the industry and to provide those who missed out on the PEPE, and ArbDoge pumps with another chance to get involved.
With the extraordinary growth seen so far, most analysts would agree that it’s been successful in unlocking its viral growth. One of the major driving forces behind its growth was the fact it was picked up by a number of alpha caller influencers during its first few days, sending a wave of whales into the project that was buying 10 ETH worth of SPONGE regularly. In fact, one guy even bought over 200 ETH in one transaction;
The extreme price surge gave birth to a new breed of memecoin millionaires in the market, who made their fortunes from buying a meme based on their favourite 1990s TV show. For example, the following wallet purchased around $60,000 worth of SPONGE on its first day, which exploded to reach as much as $1 million a few days later;
As expected, the enormous trading volume has also helped the token to be listed on a plethora of exchanges. The first major exchange to list SPONGE was LBank;
Which was quickly followed up by Poloniex and then MEXC Global, one of the top 10 exchanges in the world according to CoinGecko;
With exchanges and whales scrambling to get a piece of the SPONGE action, many analysts believe that SPONGE still has the scope for a 100x return. The low market cap, combined with the extreme FOMO, might just help this token follow the footsteps of PEPE and produce a $1 billion market cap later down the line. The recent pullback provides you with the perfect opportunity to get invested at lower prices before it takes off again.
You can purchase SPONGE on any of the exchanges mentioned above. Alternatively, if you prefer a decentralized method to buy it away from exchanges, then head over to the project’s website and use the Uniswap interface integrated there.
AiDoge – Combining memes and AI to create a groundbreaking Meme-to-earn platform.
Another low market cap crypto that’s making headlines is AiDoge, a revolutionary AI-powered meme generation platform. AiDoge describes itself as the greatest meme-generation platform that uses generative AI to create a meme-to-earn ecosystem. The project is on a mission to merge meme culture with AI technology to create a groundbreaking AI meme rewards platform.
The project is currently hosting a presale for its native token, $AI, which will be required as a utility token to access the meme generator and will also be used as a reward token for top meme creators. AiDoge enables users to harness the power of AI technology to create topical and timely memes, opening up meme creation to a wider range of users regardless of their previous artistic experience.
The platform is able to boast an extremely user-friendly interface where memes are generated through text-based prompts. These prompts are short descriptions inputted by the user that describe the meme they wish to see. The artificial intelligence then takes this description to create the meme in a matter of seconds. The best part about artificial intelligence is that it’s been trained using an extensive dataset of memes and crypto news, ensuring that it knows precisely what type of meme needs to be created.
To create utility for the native token, users need to purchase credits from the store using $Ai tokens to be able to generate new memes on the platform.
Once a meme is generated, it’s sent straight to the Public Wall, a shared virtual space where users can upvote their favourite memes. Memes that are voted to the top are entitled to receive rewards on a monthly basis, creating a meme-to-earn economy where users are incentivized to think outside the box and use the AI technology to its fullest potential. As the AiDoge community grows, so do the rewards provided to the top creators.
The presale for AiDoge is officially underway and has raised a total of $5 million so far. The presale is currently in the eighth stage, selling the token for a price of $0.00002880. However, it’s important to note that the presale uses a rising pricing strategy, meaning that the cost for $Ai will rise during each presale stage. So, for example, once the fundraising crosses the $5.5 million threshold, the ninth stage will commence, and the price will increase to $0.0000292. As a result, those that invest early benefit the most as they’re able to leave the fundraising with higher levels of unrealized profits.
yPredict – A revolutionary AI-powered trading analytical suite.
The final low market cap coin that can provide substantially higher returns than Bitcoin is yPredict, a next-generation Ai based trading research and analysis platform that provides traders with data-driven insights to help them make better trading decisions. yPredict is filled with artificial intelligence and machine learning experts, financial quants, and traders, who have joined together to create a suite of analytical tools designed to provide analytics through state-of-art financial prediction models.
The overall goal of the ecosystem is to build cutting-edge trading research tools for the trading community to access. With financial markets losing their predictability – due to the increased usage of bots and algorithms – traders need yPredict to regain their statistical edge. The primary features of the platform are the marketplace, trading tool suite, trading terminal, and high APY staking pools.
The marketplace is where financial quants in the finance sector can use their knowledge to build prediction models and list them on the marketplace in a results-as-a-service ecosystem. Developers list their model prediction results, allowing traders to subscribe to the prediction model on a monthly basis – using the native token, YPRED. From the revenue generated, 70% goes directly to the developer of the model, and the remaining 30% is distributed throughout the ecosystem.
The subscription model turns the YPRED token into a utility token based on its platform subscription, providing it with value over the long term and making it an attractive investment opportunity for those looking for rich utility tokens with room for price growth.
There’s also a market predictions platform open to all users to check asset price predictions generated through in-house developed predictive models. Again, this section of the platform is open to all users as it serves as an inbound traffic strategy for the yPredict ecosystem.
Users that hold YPRED tokens are able to access the yPredict Analytical suite, which gives them an edge in financial markets. The analytical suite provides a new breed of trading tools entirely powered by AI that can alert users for new market breakouts through pattern recognition or sentiment analysis.
yPredict is currently hosting a presale for its native token, YPRED, and has raised a total of $800k so far. The presale is in the fourth stage, selling the token at a price of $0.05. However, yPredict also uses a rising pricing strategy, so the price of the token will increase during each stage. Therefore, getting in earlier is best to take advantage of higher unrealized returns when the token finally launches on tier-1 exchanges at a price of $0.12. Currently, at today’s presale price, users can leave with more than 100% unrealized returns if they invest today.
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