In 2023, the US economy showed surprising growth, contrary to most predictions, as strong GDP numbers and government perks gave the crypto market a leg up. But while investors become more confident about pouring money into virtual currencies, let’s not overlook the elephant in the room: that same economic strength stirs a pot of unpredictability, especially with the Fed’s next moves and how they’ll shake up the crypto world.
The liquidity landscape also changed after Fed’s latest actions. Policy rates, which were anticipated to be under 4.5%, unexpectedly reached 5.25%, leading to the liquidity expansion and shifting investor appetite towards riskier assets like cryptocurrencies.
In this scenario, altcoins such as Arbitrum (ARB), Aptos (APT), Cosmos (ATOM), Osmosis (OSMO and Sui (SUI) stand out as smart choices for holders seeking to navigate and prosper in these challenging economic times. Although diversifying into innovative altcoins could yield growth, balancing risks is also prudent.
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Arbitrum (ARB): Dominating Layer-2 Networks
Arbitrum (ARB), a layer-2 (L2) network on the Ethereum blockchain, saw a substantial increase in early 2024, adding 20% to its value amidst the broader market’s dip and outperforming both Bitcoin and Ethereum. On January 5, the platform’s decentralized exchange (DEX) volume even surpassed that of Ethereum’s mainnet, partially due to the network’s average $0.26 fees being significantly lower than Ethereum’s ones of over $5. Moreover, Arbitrum’s (ARB) total value locked (TVL) hit an all-time high of $2.64 billion as of January 12.
Arbitrum (ARB) is currently trading between $1.59 and $2.43. The 10-day Moving Average stands at $2.1, while the 100-day Moving Average is at $1.88. The support levels are identified at $0.33 and $1.16, with resistance levels noted at $2.83 and $3.66.
Arbitrum’s (ARB) thriving DeFi ecosystem and appealing transaction fees position altcoin for potential future growth, while its ability to outperform Ethereum in DEX volume indicates strong market interest. However, the recent decline in Arbitrum’s (ARB) value reflects its susceptibility to broader market trends. The main challenges for Arbitrum (ARB) are maintaining its competitive edge in the L2 space and handling market volatility.
Aptos (APT): Navigating Token Unlocking and Market Impact
Aptos (APT) holders are eagerly waiting for the coming token unlock event expected to introduce 24 million APT – more than 8% of today’s supply – into circulation. A substantial portion of new assets will be distributed among core contributors and investors. Meanwhile, Aptos (APT) has seen its highest volume in a few months, peaking at over $700 million on January 5, which indicates a notable upswing in market activity.
Right now, Aptos (APT) is fluctuating between $7.21 and $11.27. The 10-day Moving Average is found at $9.18 and the 100-Day Moving Average is observed at $7.59. Support levels are at $0.97 and $5.03, while resistance levels lie at $13.15 and $17.21.
The token unlock event could impact Aptos (APT) market dynamics in both directions. While the current expectations are optimistic, the additional supply may trigger another price rally. But Aptos (APT) needs to manage its circulating supply and maintain investor confidence amidst these changes.
Cosmos (ATOM): Community Votes and Inflation Strategy
Following an earlier proposal that limited Cosmos’ (ATOM) inflation to 10%, the community is voting on setting the minimum inflation rate at 0%, which aims to benefit the Cosmos (ATOM) stakers and holders. The network produces 7% additional tokens annually, even if the entire Cosmos (ATOM) supply is staked.
Cosmos (ATOM) oscillates between $8.99 and $12.39. The 10-day Moving Average is at $10 and the 100-day Moving Average is at $9.2. Support levels for ATOM are holding at $3.98 and $7.38, with resistance levels seen at $14.19 and $17.59.
The minimum inflation rate at 0% could positively impact Cosmos’ (ATOM) value by addressing concerns of over-supply, encouraging staking, and enhancing the asset’s scarcity. However, the recent decline in Cosmos’ (ATOM) price indicates market sensitivity to these governance decisions and broader market trends.
Osmosis (OSMO): Surging Volume in the Cosmos Ecosystem
For the first time in its history, Osmosis, a Cosmos-based DEX, achieved a significant milestone of $1.121 billion in monthly volume in December 2023. In light of this, its native token Osmosis (OSMO) saw a 121.97% month-to-date increase to above $1.51.
Osmosis (OSMO) is currently swinging between $1.64 and $1.91. The 10-day Moving Average is at $1.77, while the 100-day Moving Average is at $1.71. Osmosis (OSMO) has support levels at $1.25 and $1.52, as well as resistance levels at $2.07 and $2.34.
The impressive performance of Osmosis (OSMO) indicates strong market momentum, however, the main challenge implies sustaining this growth and continuing to attract users to its platform. Osmosis (OSMO) has to navigate the competitive landscape of DEXs and maintain its appeal to traders and liquidity providers.
Sui (SUI): Remarkable Growth and Market Momentum
Sui (SUI), the proprietary token of the Sui blockchain, has seen its value escalating from $0.79 to $1.33 over just four days – a staggering 50% increase supported by a significant rise in trading volume which indicates major investor interest. Thus, Sui (SUI) has emerged from a period of limited price fluctuation as buyers have pushed it past the previous resistance zone.
Today, Sui (SUI) is zipping between $0.861 and $1.5. The 10-day Moving Average is at $1.303 and the 100-day Moving Average is at $0.926. The support level is established at $0.472, with resistance levels chilling at $1.75 and $2.39.
Sui’s (SUI) rapid growth in TVL and positive market indicators, such as the MACD and the RSI, hint at an optimistic future. However, Sui (SUI) needs to compete in the smart contract platform space and attract both developers and users to maintain its market position and capitalize on its recent gains.
Conclusion
The 2024’s crypto scene is influenced by a dynamic interplay of economic factors – the US economy’s unexpected growth and changes in liquidity landscape are shaping investor behavior. The liquidity expansion after the Fed’s policy rate hikes suggests a favorable environment for virtual currencies. In this context, specific altcoins like Arbitrum (ARB), Aptos (APT), Cosmos (ATOM), Osmosis (OSMO) and Sui (SUI) emerge as strategic choices for investors looking to diversify portfolios and seize opportunities in the volatile crypto market. Their killer features and market positions provide the very blend of stability and potentially high returns needed to navigate and capitalize on the economic challenges.
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Source: https://cryptodaily.co.uk/2024/01/smart-crypto-picks-for-surviving-and-thriving-in-case-of-economic-crisis