$2.15 billion in cryptocurrency was liquidated in 24 hours this weekend. Worse than LUNA. Worse than FTX. Which coin will recover? Which will not? How do you know?
We pose a simple question that we have used before to help us figure out which project is stronger in poor market conditions. And that question is, how long has the project existed at this current price level? And does it show strength or weakness? Based on this question, we have 4 altcoins that will recover faster. A couple of them have already started this Monday.
1) Bitcoin (BTC)
Bitcoin is one of the fastest recovering coins after major liquidations like we saw last weekend. As I write these lines on Monday morning, the price has returned to just a 3% drop in the last 24 hours. So really, the price has recovered. But even if it hadn't, we knew it would happen. Look at the bear market we've had. Bitcoin's peak was $67,000 in November 2021, just as the bear market began. And indeed, it was a long one. Bitcoin hit the bear market low of $15,814 in November 2022, a year later.
But after that bottom, the recovery began. It wasn't fast. Nearly 18 months, but by March 2024, it had regained its previous highs. Is patience required? Yes. But has it recovered and kept money in your pocket? Also yes. The last time BTC was at today's price was less than 3 months ago, in mid-November. And Bitcoin is quite consistent in that. This is the safest coin to hold in the current industry. And the more expensive it is, the safer it is because the likelihood of a catastrophic failure causing the project to lose value is very low.
2) Sui (SUI)
Sui is another great coin that we expect to recover quickly. This weekend, Sui dropped from $4.25 to $2.73, or a 35% decrease at its lowest point. SUI has also recovered a bit. Currently, it stands at $3.15, or up ~15% from its weekend low. Using our very simple criteria on when the project last reached this price level, we see that Sui last hit $2.73 in the first week of November, or 3 months ago.
Losing 3 months of profits sounds a lot less tragic than a massive $2 billion liquidation, right? And that’s the issue. An active trader or an aggressive seller who trades against them and finds that after 3 months they break even will be disappointed. But not heartbroken. Sui has been and continues to show great resilience.
3) BNB
Next, we have BNB. A great project that we haven't talked much about recently. Although we are just looking at the chart, BNB's active token burn program helps lift its price. Every quarter, like clockwork. And it also helps the chart. BNB has dropped 16% over the weekend from $687 to $577. It has recovered about 8% from its weekly low of $542.
When was the last time BNB reached the current price? Like Sui, it was the first week of November. BNB has been a quiet powerhouse. Even after this weekend's explosion, BNB is still up 91% in the last 12 months. Betting on it is like betting on Binance to maintain its leading position among cryptocurrency exchanges. And if you've seen how they operate in emerging markets, you know it will take a lot to dethrone them from their leading position in these markets.
4) Solana (SOL)
Today, we have Solana. Solana at $8 after the FTX disaster is legendary these days. Solana fell below $10 at the end of December 2022. It hasn't looked back since then and has shown its resilience. Let's take a look at the more recent history.
SOL has surged 101% in the last 12 months even with the shakeout this weekend. Its all-time high was 15 days ago at $293. The weekend low was $186.51. That's a 24% drop in just 15 days. The current price of SOL is $199. And when was the last time SOL was at this price? Just 3 weeks ago. SOL had an incredible price surge in mid-January, rising from $199 to an all-time high of $293.
DYOR!#Write2Earn #Write&Earn $BTC
