After profit-taking liquidations of overly aggressive/greedy leveraged long positions saw major cryptocurrencies pull back aggressively from highs on Tuesday, the market is enjoying a strong recovery on Wednesday amid renewed dip buying.
Bitcoin (BTC) dipped as low as $35,000 on Tuesday but has since recovered over $1,500 to trade back above $36,500, with the cryptocurrency enjoying strong support at a short-term uptrend/its 21DMA and last up nearly 3% on the day.
Ether (ETH), meanwhile, was last trading back to the north of $2,000, up more than 4% from Tuesday’s lows.
Solana (SOL), the best performer in the top 20 by market capitalization recently, was last up around 14% in the past 24 hours above $60 having hit new highs for the year, whilst Avalanche (AVAX) was another notable strong performer, gaining around 17.5% in the past 24 hours to hit its highest level since last April above $20.
Sentiment in crypto markets remains buoyant amid ongoing expectations that spot Bitcoin ETFs will soon gain approval in the US and as macro investors increasingly bet that a US Federal Reserve rate cutting cycle will begin midway through next year.
With prices pumping, its perhaps unsurprising to see that capital inflows into the broad crypto market have amped up in recent weeks.
CoinShares’ weekly fund flow report revealed net investor inflows into regulated digital asset investment products remained at close to $300 million for a third consecutive week, with institutions moving into the space in size ahead of expected spot Bitcoin ETF approvals.
Meanwhile, as per data presented by Glassnode, the 90-day net change of the outstanding supply of the top four stablecoins by market capitalization (USDT, USDCC, DAI and BUSD) has shifted into a notable uptrend, signifying investors are shifting increasing amounts of capital onto the blockchain.
While sentiment in the broader crypto market remains buoyant and while the rebound from Tuesday lows could well extend, investors looking to turn quick exponential profits are likely to continue flocking to the highly illiquid shitcoin/meme coin market, where tokens routinely post 10x gains in less than 24 hours.
Dojo Supercomputer ($DOJO)
A shitcoin called Dojo Supercomputer ($DOJO) that was launched earlier this year has seen a sudden more than 330% pump in the last 24 hours, according to Uniswap, making it one of the best-performing shitcoins.
As per DEXTools, the token last had a still small market cap of only slightly more than $600,000, with just under 600 holders and around $150,000 in locked liquidity.
While the token has no buy or sell tax, the DEXTools’ security audit revealed that it does have a modifiable tax, which is always a red flag, as well as seven other concerning aspects to its smart contract, so potential investors should be cautious.
The Balkan Dwarf ($KEKEC)
Another shitcoin called the Balkan Dwarf ($KEKEC) has seen an impressive more than 200% pump in the last 24 hours, as per Uniswap.
The token, which was launched back in October, currently has a market cap of around $2.5 million, with around $240,000 in liquidity and nearly 1,800 holders, as per DEXTools.
As per DEXTools’ security audit, the token’s smart contract has a few concerning aspects to it, including a hidden owner, so investors should be cautious as it could end up as a scam.
A token launched on Monday called FrontFanz ($FANZ), which describes itself as the ultimate social subscription utility token, is pumping for a third successive day and was last up around 250% in 24 hours, according to Uniswap.
As per DEXTools, the token last had a market cap of around $3.1 million, with $560,000 in locked liquidity, a little over 1,000 holders and 24-hour trading volumes of nearly $4 million.
As per DEXTools’ security audit, the token only has one undefined smart-contract risk, but investors should always be cautious of low-cap coins like this, nonetheless.
Crypto Alternatives to Consider
Shitcoins can offer huge potential returns but also come with a lot of risk.
Those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, 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.