In a recent segment, Crypto Banter, an analyst, discussed the current state of altcoins and meme coins, cautioning investors to be careful and strategic during market volatility. Instead of following the herd and buying assets that have quickly recovered, Crypto Banter emphasized the importance of considering the extent of a token’s price drop before making any investment decisions.
He predicted that the market will continue to experience volatility in the near future and warned against assuming that it will bounce back to all-time highs immediately. Instead, he advised investors to look at both the price and percentage decrease from the peak to determine a token’s relative strength. For example, while a token like Rune may have dropped by 62.57%, its recovery of only 31% suggests potential undervaluation despite the 50% net decrease.
Crypto Banter also gave examples of tokens that have shown genuine resilience and long-term potential instead of just bouncing back quickly. He mentioned Ando, which dropped by 46% from its peak but has recovered slightly and is only down by 6.67%. He also recommended buying Telegram (TON), which only fell by 9%, as it could lead in the next cycle.
The analyst further discussed Celestia and presented a framework that focuses on two main aspects. Firstly, it is crucial to evaluate how a token has performed from its peak. For instance, Celestia plummeted from $22 to $6, a 65% decline, and although it has bounced back by 30%, it is still 52% below its peak. This highlights the significance of seeking resilient and high-quality yet affordable tokens like Rune and Arweave, which have experienced price drops of 41% and 40%, respectively, but still offer substantial value.
