Investment idea: Short STEPN, purchase of Ethereum and Solana

By Kiana Griffin Cryptocurrency Market 0 Comments

Founder of the ENCRY Foundation Roman Nekrasov on a token that has exhausted its growth potential in the short term and cryptocurrencies that have the opportunity to double in price before the end of the year

The opinions of experts may not coincide with the position of the editors. “RBC-Crypto” does not give investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.

Now I would look towards GMT (Stepn). But not buying the token itself with the expectation of its growth – here the token has already exhausted its bullish potential in the short term and is showing signs of obvious overheating. It would be wiser now to bet on the decline and “short” the token, which already takes into account the positive news about the listing on Coinbase. I believe that he can sink at least 30%. This is about short term solutions.

Other than that, I would look towards ETH, which is expected to have a major upgrade at the end of the summer. Potentially, by the end of the year, ETH could double its current level. In the long term, I would also buy Solana, the platform is actively attracting liquidity, the number of projects launched on it is growing.

Risks

The risks of shorting GMT are the same as shorting other assets, be it Chicago wheat or Tesla shares. This is an incorrectly set position and an incorrect forecast for the drawdown depth. Some traders expect a deeper drop – up to 80%, and if their forecasts are correct, then those who shorted, taking into account the forecast of a 30% drop, risk being left in the red. That is, the main risk is to find the support level incorrectly.

The risks of investing in ETH and SOL are more related to the general market situation. Now the situation on the crypto market is unstable. Although many say that the bull cycle is about to begin again, I do not see such an opportunity in the future for six months. And if for some reason the market goes down, then these assets will follow it. Positive news about liquidity, updates will only soften their fall.