The Cryptocurrency market is one of the most volatile, yet profitable trading markets in the world, currently holding a combined market cap in excess of $300 Million USD. The obvious names which come to mind are Bitcoin, Ethereum, and Ripple, which hold the top 3 ranks in terms of market capitalization. However, seasoned investors and cryptoanalysts will know that there is indeed a world of opportunity awaiting if one delves deeper into the market.
Currently, there is an excess of 1600 cryptocurrencies, tokens, ICOs and other blockchain related projects doing rounds in various financial markets. Some of these coins have experienced massive highs that helped many investors make a small fortune out of them. However, the overall Cryptocurrency market recently encountered a slump, after which, many coins are struggling to recover. Such is the case for three cryptocurrencies, in particular, namely, Dogecoin, Cardano, and Reddcoin.
Current Market Scenario
Cardano (AMA), Reddcoin(RDD) and Dogecoin(DOGE) were all “talked” about tokens before, with all of them reaching their peaks during the massive highs experienced during early January. However, the values of all three coins have been declining steadily, reaching under a $1 at one point. Below we will discuss the reasons which led to their massive downfall.
- Cardano is currently ranked 7th in terms of market cap according to Coinmarketcap. It currently holds a market cap of $4,063,368,276 USD at the time of writing, with a total supply of 31,112,483,745 ADA tokens. While this may look impressive to novice traders, Cardano’s value has dropped considerably from the highs of January, which achieved an all-time high of $ 1.17 on January 07th. It has since dropped dramatically to a measly $0.183960 at the moment. Like always negative investor sentiment played a key role in suppressing Cardano’s price. Investor confidence started to fall on the Cardano project, as it succumbed to various pump tactics by investors. Another major factor that hampered Cardano’s price growth was the recent investigation of South Korean Markets, which affected the overall Cryptocurrency market indirectly.
- DogeCoin, currently ranked at 41 has experienced turbulent price highs and lows in recent times. This comes after a strong market presence in January, where it was valued at $ 0.017664. Currently, it sits at $ 0.003541, which is reflective of the massive decline it experienced. Many have speculated about the reasons for this massive downfall and have pointed out the outward cash flows during the festive season. If reports are to be believed, then the withdrawal of a large number of investors from the Doge market is directly responsible for the price slump.
- Reddcoin, probably the worst hit of the lot is ReddCoin, currently ranked 82nd in the world. It dropped from an impressive figure of $ 0.15158 on January 16th to $ 0.005276 at the time of writing. Again, investor sentiment played a key role in its decline, which is being seen in the case of many recent ICO projects. Almost every major coin came under pressure amid China’s plan to crackdown on crypto trading. The decline was also partly fueled by news of data breaches in Asian crypto exchanges which increased negative sentiment towards the coin. As investor confidence started to decrease, so did Reddcoin’s surge and ultimately it’s price.
From the surface, all of the above mentioned 3 coins are experiencing probably their worst performance in recent years and certainly do not look enticing to any investor at the moment. However, the Cryptocurrency market has been prone to such volatility and price movements before, so it would not be a surprise to see their values recover to a respectable position. As it stands, the total scope of the blockchain industry is not yet fully realized, and more and more investors are starting to flock these markets. Thus, all three coins are expected to make some degree of recovery in the coming months.
We will be updating our subscribers as soon as we know more. For the latest on cryptocurrencies, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Mark Seton via Flickr