Credit rating agencies are closely watching the ongoing debt ceiling debate in Washington. The debt ceiling crisis is creating a good buying opportunity for investors. Metacade (MCADE), like other cryptocurrencies and stocks, has come under intense pressure as the debt crisis has escalated.
The token was trading at $0.022, lower than its all-time high of $0.046. Bitcoin has also retreated from the year-to-date high of $31,000 to below $27,000. This is because of the risk-off sentiment among market participants, with the US dollar index surging to the highest level in more than a month and the VIX index jumping by double-digits.
Fitch, a major rating agency, has placed the US in a rating watch negative area due to the brinkmanship over the debt ceiling. The report noted that failure to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signals downside risks to US creditworthiness.
However, I believe that the debt ceiling issue is creating a good opportunity for investors to buy the dip in key financial assets like Metacade and stocks. It is unlikely that the US will default, since the two sides will likely reach an agreement. Janet Yellen, the head of the Treasury, has said that the US will run out of money on June 1, giving them six weeks to reach an agreement.
Metacade price has not retreated due to bad fundamentals, but rather the ongoing risk-off sentiment. Metacade is a blockchain project that has raised over $16 million in a token sale. The developers are building a gaming product that is expected to be much better than existing products. A recent study estimates that blockchain games will make over $65 billion by 2027, meaning Metacade will have a market share in this industry.
On the hourly chart, Metacade price has moved sideways in the past few days. The coin has moved slightly above the ascending trendline, and has jumped above the 25-day moving average. The Relative Strength Index (RSI) has also moved above the neutral point. Therefore, I suspect that MCADE price will continue consolidating and then make a bullish breakout later this month. If this happens, the next level to watch will be at $0.024. A move above that level will bring the resistance at $0.30 into view.