I want to start to note that I am not a financial advisor and that you should always do your own research before doing any trading. But I wanted to share my opinion on an ALT that is looking ready to BOOM as soon as the overall crypto market turns a little bullish.
Background
There have been a lot of ups and downs in crypto lately. Looking at BitCoin it was consolidating between 9-11k USD and no one knew where the market was going. ALTs have really taken a beating with many being down 50-90% from recent All Time High (ATH)
It is at times like these that I look for buying opportunities in the smaller ALTs since if market sentiment turns around it will most likely cause a big jump in them (5-10x is my hope).
Recently BTC dropped below the 9k USD support and dropped down to under 8k USD. In almost every ALT this caused an equal (or greater) drop in price since people were worried and sold off some of their holdings (LTC, NEO, CLOAK, XSPEC, etc...). This is the natural behaviour but it is also where outliers (and opportunities) can be found.
What most people missed!
During and after this dip I noticed something very interesting in a particular ALT. No matter how deep BTC dropped the USD price of this ALT didn't change. And NO I am not talking about Tether!
The coin I am talking about is DEEPONION. Before the drop, the price of DeepOnion was just below $2 but during the entire dip, the price of DeepOnion barely moved in USD price. The only reason I can think of is that people aren't willing to sell this coin for less than $2. Even though BitCOin showed high volatility and was going down quickly holders weren't selling.
My thoughts on the matter
DeepOnion is down to a 90% discount from ATH ($20) that happened during the bull run in January. Since then the project has moved steadily forward, new releases, added to new exchanges but despite that, the price had been steadily dropping. I think this was partially due to the fact that some people were taking out some profits (Did 20x in a short time) but mostly because the overall crypto market view had turned Bearish (BCT dropping from 20k to 10k USD).
As mentioned DeepOnion kept dropping together with BCT but two weeks ago it seemed to find support at $2 during the BTC consolidation phase (9-11k USD). The interesting part is that it kept the $2 support level, even when BTC dropped 20% in 24 hours (yesterday). This shows incredible strength and support of this coin.
The DeepOnion HODL:er aren't willing to part with their coins at anything less than $2 so the sell-off that has occurred is most likely all but done. If/When the market starts to turn Bullish again, people will move into ALTs and the people holding DeepOnion right now will not sell for cheap. They have held on to their coins during this bearish period and are looking long-term. That means that, in the future, even small volume spikes will quickly drive the price up. Supply and Demand, it will be as simple as that. The demand is going to rise but the supply is going to be very limited -> Price will rise.
Final Notes
This is, of course, assuming that the crypto market eventually turns Bullish and that we are close to a bottom for BCT. I am not guaranteeing that $2 is going to hold for DeepOnion if another 20-30% drop in BCT occurs. I am just saying that right now people don't want to sell and that it seems it will take something major to occur to get the DeepOnion HODL:ers to change their minds.
So keep a lookout on this coin in the near to mid-future since I think it could be in for some very good gains. Right now you can trade DeepOnion on KuCoin and Cryptopia.
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