A price retrace was inevitable
Well, if you’re a Tron (trx) maximalist, then you will certainly have a hard time relating to this article; I mean, you guys had a ride…a party actually. Following the launch of Tron network’s Sunswap , the project has seen a positive ride and the fear of missing out is pushing investors into getting themselves some Tron coin, token or diving into the Tron DeFi ecosystem. Once again, Tron continues to ride the waves created by Ethereum…but that’s a matter for another day.
Congratulations to the Tron guys though. For certain DeFi speculators, the atmosphere just keeps getting tense with each day that passes, while yearn finance token had a breathtaking run to above $36,000 and many other defi projects seeing massive gains over the past couple of days, certain investors got totally wrecked as the manipulations custom with the crypto space rears it ugly tail once again. If you bought some Noodle token, then possibly you won’t have enough left to buy real noodles anymore, that ride from $6 to $0.04 was another notable tragedy for the year.
Some viewer discretion there guys!
Cryptocurrency investment is a highly risky venture and caution is advised; it is hard not to fall into a ‘pocket shattering’ venture in the crypto space. Apart from some defi tokens wallowing in deep reds, most other cryptocurrencies have seen double digit losses as bitcoin trades below $11,000 for the first time in a relatively long time.
It has been a very interesting run of days as many cryptocurrencies have seen enormous gains and the total cryptocurrency market capitalization soared above $390 billion bringing in some pleasant feelings amongst bitcoin and altcoin owners, but nothing lasts forever.
It is hard to say if we already hit the bottom for the week or if we are sitting on a time bomb. But a price retracement of this kind is always bound to happen. Probably things will get going from here or even drop further, time will tell. But for someone who has been in the crypto space for a while, this sequence is very peculiar.
De ja vu? The last quarter of each year seems to come around with similar stories—price losses, even though we are still some months away from the last quarter of the year, a repeat of the past event is feasible, possibly the year will bring in something different.
Taking a look at the price drop, one would wonder how and why it happened. The signals seemed healthy and personally I imagined the total cryptocurrency market capitalization hitting $400 billion, but that might be a dream for later time. Away from the crypto space, certain mainstream interests in cryptocurrency creates a very enthusiastic environment and, what a time to be in the crypto space. The crypto space seems to have recovered from the effect of the corona virus and it will be hasty to suggest the drop was caused by the pandemic once again, this is actually not the case.
Or the printing machines at tether simply stopped working, they can fix that in a minute, so that’s certainly not the case too. It is expected that after a long period of price gains, speculators move to sell and take some gains from the market, price correction is not only applicable to cryptocurrencies, the stock market too as well as every other asset market if prone to gains, retracements and correction. We might have just had a repercussion from whales and dolphins taking some profits from their investments which have been yielding for the past couple of weeks.
Bitcoin's 24hrs chart
It is okay to panic, but panic sales are regretted most times, it is not known, the next direction of things, holding for dear life or taking profits…do your own research and trust your instincts. However, the retracement is inevitable.
All images were obtained from coinmarketcap
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