Crypto markets remain in free fall on Friday, with Bitcoin (BTC) last down around 8% in the last 24 hours and Ether (ETH) last down around 5.0% in the $25,700s and $1,650 areas respectively.
That takes losses on the week for Bitcoin and Ether to over 11% and 9% respectively, marking one of the worst weeks so fat this year.
The broader crypto market’s total capitalization has dropped around $110 billion this week to only slightly above $1 trillion.
In terms of what’s causing the crash, a combination of factors have been weighing on broad crypto sentiment.
Firstly, macro is a headwind– US long-dated bond yields are back near multi-year highs as traders bet the strong US economy means higher interest rates for longer, while US stocks (correlated to crypto in recent years) have been pulling back.
Thinner than usual August liquidity conditions, which mean the month is often volatile and bearish (in the stock market, at least), have also been cited.
Finally, the fact that Bitcoin and Ether both broke below major support levels, calling their 2023 uptrends into question, has also weighed heavily on sentiment.
While most of the market is in the red, a few cryptocurrencies have been holding up.
Let’s take a look at the best cryptos to buy now on August 18th.
Injective (INJ)
Injective, the cryptocurrency that powers the finance-focused Injective layer-1 blockchain protocol, spiked nearly 10% on Friday, despite the broader market slump.
INJ was last trading just under $8.0, having broken back to the north of both its 100 and 21DMAs on Friday and with the bulls eyeing a near-term test of the 50DMA at $8.20.
Its outperformance comes amid a surge in interest in the cryptocurrency across social media, as per a tweet by LunarCrush.
This surge in interest comes two days after Injective announced that it had delivered its “largest tokenomics upgrade yet”, aimed at increasing the rate at which INJ tokens are burned each week.
INJ’s strength despite broader market turmoil suggests a potential near-term test of the yearly double-top just below $10 is on the cards.
Quant (QNT)
Having found strong support at the long-term support zone around $95, QNT is one of the best-performing cryptos on Friday and is up around 1.5% on the day in the $99 area.
QNT, an Ethereum-based ERC-20 token that powers the Quant Network’s ecosystem of enterprise software solutions, could be a good dip buy right now.
Since late 2022, buying dips under $100 has been a consistently profitable strategy, at least if you are looking for some short-term gains.
But traders should be warned that if QNT is to break this key support level, a fast drop back towards 2022 lows around $41 cannot be ruled out.
XinFin Network (XDC)
XinFin Digital Contract (XDC), the token that powers the enterprise-grad, open-source XinFin Network blockchain protocol, was last up around 6.5% on the day on Friday, making it one of the best-performing cryptos.
XDC has not succumbed to the same sell pressures as the broader market in recent days thanks to recent, highly bullish technical developments.
In early July, XDC powered to the north of all of its major moving averages and its previous yearly highs at $0.045.
The token was last trading near $0.060, admittedly down over 33% from its earlier monthly highs at $0.093.
But the uptrend for the year remains strongly intact and dip buyers will probably pounce if the token was to retest support at $0.50.
Alternatives to Consider
For crypto investors looking to diversify, an alternative high-risk-high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
See the 15 Cryptocurrencies
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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