Why is Crypto Crashing - FOMC Meeting This Week, Best Coins to Buy the Dip
The cryptocurrency market has fallen by 1.9% today, with its total cap dropping to $1.23 trillion in the past 24 hours as investors de-risk in anticipation of this week's FOMC meeting.
The expectation is that the Federal Reserve will announce its 10th-consecutive rate hike when it meets on tomorrow and Wednesday, bringing its funds rate between 5% and 5.25%, its highest level since July 2007.
Crypto has responded to this expectation by falling more or less across the board, with Bitcoin (BTC) dropping by 2.5% in the past 24 hours, and with certain alts -- including ETH, SOL and DOT -- falling by 3% or more.
However, this market-wide decline provides traders with a good opportunity to buy at a discount, so here's our roundup of the best coins to buy the dip, before prices begin recovering later in May.
At $1,848, ETH has dropped by 3% in 24 hours and is down by 12% in the past fortnight, although it remains up by 54% since the start of 2023.
ETH's indicators are mixed, with its relative strength index (purple) dropping below 50 in the past couple of days, and showing a possibility of further falls as the altcoin loses momentum.
And while its 30-day moving average (yellow) continues to rise above its 200-day (blue), it also fell below the psychologically important support level of $1,900, support the suspicion that more falls are incoming this week.
That said, Ethereum remains one of the most fundamentally strong coins in the market, with its recent Shanghai update -- which introduced staking withdrawals -- only reinforcing its bull case.
On top of this, Ethereum has also enjoyed positive adoption news from the likes of Societe Generale, Visa and Coinbase (which is building its own Ethereum layer-two) in recent weeks.
So once this week's dip has bottomed out, expect ETH to recover handsomely in the coming weeks and months.
SOL has dropped by 6% in the past 24 hours, although its current price of $22.26 also represents a gain of 3.5% in the past week and of 5% in the last 30 days.
SOL's chart is similar to ETH's, in that a falling RSI suggests additional falls this week.
On the other hand, SOL's 30-day moving average formed a golden cross with its 200-day average a couple of weeks ago, something which tends to signal a breakout.
Likewise, it's encouraging to note that the altcoin's support level has been rising steadily since March, suggesting that any falls this week may be relatively limited.
SOL has also been buoyed recently by adoption news, with IoT-focused platform Helium migrating to Solana's network a couple of weeks ago.
Helium will also be launching its blockchain-based cell phone network on May 4, implying that SOL shouldn't remain down for too long.
Running on Polygon, yPredict is a new AI-based analysis and forecasting platform for traders, with the presale for its native YPRED token already raising close to $500,000.
It will feature a range of tools that will help traders and investors make more intelligent buying and selling decisions, and has in fact already launched its own trading algorithm in beta form.
In the next few months it will follow this up with a number of AI-based prediction tools for the cryptocurrency market, as well as sentiment analysis.
It will also open its own marketplace, through which traders can subscribe to forecasting and analytical tools built by developers.
Within this ecosystem, YPRED will have a variety of uses, including paying for model subscriptions, gaining access to analytics, and staking.
Investors can join its presale by heading over to its official website and linking their software wallets, before paying for YPRED using either ETH, MATIC, BNB, USDT or fiat.
At $11.36, ATOM is down by just over 4% today, despite remaining up by close to 5% in the past week and by 21.5% since the beginning of the year.
ATOM's indicators don't look particularly promising at the moment, with its RSI falling below 50 and its 30-day average continue to struggle below its 200-day.
At the same time, its support level (green) has been incrementally declining since March, indicating that it could fall further this week.
Nonetheless, ATOM remains sound in terms of its fundamentals, with native platform Cosmos -- the 'Internet of Blockchains' -- continuing to develop and expand in size.
Most notably, Composable Finance recently launched the first Polkadot-to-Kusama connection via Cosmos, highlighting the growing application of the latter.
As such, ATOM is in a good position to recover strongly once this week's potential dip is out of the way, and to have a strong next few months.
AiDoge is a new Ethereum-based platform which uses artificial intelligence to generate relevant and topical memes.
It launched the presale for its AI token last week, and as of writing it has raised in excess of $600,000, which stands as a very impressive figure for a token offering that has only just begun.
How AiDoge works is simple: users enter a short text-based description of the meme they'd like to see, and AiDoge uses a combination of advanced algorithms and a large data set to generate a corresponding image.
It's as straightforward as that, yet what makes AiDoge interesting is its community element, with users able to upvote and downvote memes.
Excitingly, the highest-rated memes will earn their creators rewards in AiDoge, incentivizing the cultivation of a thriving online community of meme creators.
Currently, 1 $AI token costs $0.000026, yet this will rise to 0.0000264 in the presale's next stage, which will begin in just over five days.
This gives buyers a limited window of opportunity in which to buy AI on the cheap, and with the altcoin potentially in line to surge once it lists on exchanges later in the year, interested investors are advised to act sooner rather later.
Another new Ethereum-based platform, Launchpad.xyz is aiming to become a one-stop shop for users wanting to enter Web3.
Having launcherd the presale for its native LPX token a few days ago, it has already raised more than $150,000.
What has excited investors about Launchpad is that its platform will integrate the many different applications, tools and services that make up the growing Web3 sector.
Currently, these different parts of the Web3 ecosystem are generally self-contained and siloed, something which acts as a block to wider adoption, given that the general public is turned off by the complexity of having to have different wallets, apps and utilities in different places.
Accordingly, Launchpad will feature a Web3 wallet address, where users can keep their coins, NFTs and other digital objects.
It will also feature a play-to-earn game hub, a launchpad for presales, a trading terminal, and an AI-powered search engine specifically for crypto.
Given such ambition, it's not hard to see why Launchpad has been able to raise so much money in only a few days, and its LPX token is certainly one to watch when it lists on exchanges later in the year.