The 1$ target: How feasible is it?

^Source

For cryptocurrencies whose value still runs in cents, hitting that point where one piece of your holding becomes equivalent to a dollar is a common dream for every investor. It is a norm to see investors predicting when their cryptocurrency holdings (which are currently valued below a dollar per coin) hit the one-dollar landmark and how much their total holding would be worth by then. For low-cap coin investors, their holdings would run into hundreds of thousands and even millions of dollars if the coin they are invested in hits the 1$ point.

Dare to dream! Investors seek to make the highest possible gains, fortunately, there are no limits to gains in the crypto space…and losses too, unfortunately. Hence buying very low-cap coins or coins whose value currently runs in cents, keeping them, and hoping they exceed 1$ in value is a common practice. Personally, I do hold a couple of micro-value coins hoping they hit the 1$ point one day, or at least close to that.

But dreams are not horses, if they were, everyone would love to ride…literally, I’m not a huge fan of horses though. But that’s by the way, the point is, getting to the 1$ mark is not always an easy feat, and for low-cap projects, it is always a hard nut to crack, very much harder than the investors tend to think. Even when the value per coin is close to a dollar, it is a normal market attitude to get weary of buying a coin for a dollar, hence, getting to the one-dollar mark is a tough journey, and exceeding it also gets hard.

Resistance exists at any stage of price movement, regardless of the direction. Buyers develop different attitudes at certain stages of price growth or retardation, at some point, the market gets fearful and scared of buying at the top. Points like this keep the price from going to a dollar and past it. Remove restrictions, and getting to the desired value level would be a very easy journey, however, the resistance is a very strong hindrance, more than we think.

To get to the one-dollar value, a micro-value coin project needs to break through several resistance levels, the amount of resistance is proportional to the current value of the coin in question. The possibility of going all the way to trump these resistances lies in tokenomics, reputation and market impression of the project.

A project with great tokenomics is limitless in terms of how far it can grow in value, the 1$ level, and even levels above that are all very feasible…if the tokenomics is right and relatively impressive. ‘Relatively impressive’ in the sense that despite having good tokenomics, a project might still be unable to hit the price target as the impression it makes is not enough to hit the price mark. In this case, the tokenomics is great; but not enough.

Tokenomics of a cryptocurrency project consists of; the token supply, generation (as the case may be) and distribution, project utility, and the team as well as the community behind it. Each with its own effect, these aspects influence the value of any project and may pose huge resistance if any of them is not done right.

^{A good team is essential to the success of any project. source}

While a feasible utility may offset enormous coin supply and distribution, the amount of coins in circulation surely affects the speed of hitting the 1$ mark. It is easier for a project with 100 million tokens in supply to hit the 1$ value than a project with a relative level of utility and a billion tokens in supply. Thus, buying thousands of coins of a project with over a billion more in supply and waiting for these coins to hit 1$ per coin may keep you waiting for a much longer time, while this is surely possible, it will unarguably take more time. Taking a look at the market capitalization of cryptocurrencies will clarify the effect of token supply on value per coin.

Utility always has the biggest effect on the value per coin of a cryptocurrency project and the value of the project as a whole. I mean, projects such as Cardano (ADA), IOTA (MIOTA), and Ripple (XRP) with outrageous token supplies once hit the 1$ mark. They even exceeded it, making a clear show of the effect developing an impressive and feasible solution could have on the value of a cryptocurrency project.

Only a good team can develop a great solution on the blockchain, a good project must have a good team, the team is, as a matter of fact, the biggest determinant here. A team that works hard towards the success of their project is poised to break through any resistance on their way, this includes market restrictions and developmental restrictions. For such a team, the one-dollar mark is just a matter of time, regardless of the amount of tokens in supply.

^Source

Predictably you’re stuck with this article to this extent because you own a ‘big bag’ of a project’s token and are already counting your potential fortunes if it hits the one-dollar mark, the fact is, you’re not alone. But such dreams don’t always come easily. If the tokenomics is right (relatively), then patience is the only virtue you need. Staying with your investments and trusting your decisions is vital. The 1$ target is a desired goal, but it is a huge mountain to climb…a huge one at that, especially when there are millions of tokens flying around the sell orders.