Following the recent crypto crash, are things getting ready to stabilize? And if so, what does that mean for the price of Ankr (CCC:ANKR-USD)? Established coins like Bitcoin (CCC:BTC-USD) and rising star names like this one have been hit hard by the recent market maelstrom. Now, things may appear to be on the verge of a recovery. However, it’s still too early to tell.
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Cryptocurrencies may be down big from their highs. Yet, with many of them still trading above their February and March price levels, some are noting that the selloff may have a ways to go before it’s over. Add in the heavy amounts of leverage some traders took on during the frenzy and a further correction seems even more likely.
In short, this points to taking a cautious approach for now. However, don’t take this to mean that Ankr is a crypto to avoid overall. Right now, it may be a bit chancy to buy the dip, but a look at its fundamentals makes it clear that this one could end up a long-time winner. It just may be best to wait out today’s crypto storm before making it a buy.
Why ANKR Is a Token to Keep on Your Radar
Ankr has been around since 2017. However, it’s only been this year that the crypto has soared in popularity. Why are investors interested in it now? To answer that question, let’s first break down this token and its platform.
So, what is ANKR? Hosted on the Ethereum (CCC:ETH-USD) network, it’s the token that powers the distributed computing platform that shares its name. What’s so special about the platform? As InvestorPlace’s Josh Enomoto recently discussed, looking beyond the jargon, this platform allows for the lending of excess computing capacity for blockchain and decentralized finance (DeFi) transactions. These include activities such as crypto staking as well as node deployment.
For those less familiar with DeFi, this may make your head spin. Yet, you don’t need to be heavily involved in this sphere to appreciate the opportunity here. If blockchain proves to be more than just a fad, it could seriously disrupt the “old school” finance world.
Already demonstrating strong utility, this platform could continue to rise in usage in the blockchain economy over time. In turn, this could fuel appreciation in the price of ANKR.
So, with this in mind, you shouldn’t dismiss this as a speculative altcoin. However, while its fundamentals may be solid, that doesn’t mean you should buy into ANKR today. Things may be starting to look like a recovery in the crypto world. Even so, diving in now may be like trying to catch a falling knife.
Don’t Try to Time a Crypto Market Bottom
With Bitcoin bouncing back towards $40,000 after falling to prices near $30,000 — and with Ethereum back well above $2,000 — it may be tempting to declare that the selloff is over with cryptocurrencies.
But, while crypto is mounting a rebound as of this writing, for all we know this could be a dead cat bounce. In fact, we’ll only know whether this is a near-term correction of the beginning of the end for the crypto bubble in the coming weeks.
What does this have to do with ANKR? Currently down over 46% from its highs, some may be tempted to buy the pullback ahead of a market-wide recovery. However, just like with most altcoins, it’s important to note that ANKR remains substantially up from prices seen as recently as March.
Only a little more than two months ago, this token traded for less than 5 cents. And, it was only three months ago that it was trading for less than 3 cents. Putting it simply, if what we’re seeing right now is only the eye of the storm, buying today leaves you exposed to tremendous downside risk.
As Is Par for the Course, Wait for Calm Waters
Among the plethora of altcoins now trading on major exchanges, there are essentially two categories. In the first one, there are the “meme coins” and wannabe “meme coins” that have little else going for them other than naked speculation. Dogecoin (CCC:DOGE-USD) is a prime example.
Fortunately, though, Ankr is in the second category. These are coins and tokens with long-term potential, thanks to the high utility of their respective platforms. These cryptos stand to gain if DeFi takes off as a viable alternative to traditional banking.
That said, while its long-term prospects remain strong, now is not the time to pounce on ANKR. With the risk of it falling another 50% to 70% before all is said and done, it seems like taking your time may be the best move today.
On the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum. He did not have (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.