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Credit rating agencies are watching the ongoing debt ceiling debate in Washington.
Fitch placed the US into a rating watch negative area.
The debt ceiling crisis is creating a good buying opportunity.
Metacade (MCADE), like other cryptocurrencies and stocks, has come under intense pressure as the debt ceiling crisis has escalated. The token was trading at $0.022, which was much lower than its all-time high of $0.046. Other cryptocurrencies have also been in the red. Bitcoin has retreated from the year-to-date high of $31,000 to below $27,000.
Debt ceiling crisis opportunity
Metacade price has not retreated because of its bad fundamentals. Instead, it has dropped because of the ongoing risk-off sentiment among market participants. This is evidenced by the fact that the US dollar index has surged to the highest level in more than a month. The closely watched VIX index has also jumped by double-digits.
The main concern is that the American government will default on its debt obligations in June if Democrats and Republicans fail to reach an agreement. Recent reports show that talks between the two negotiators have hit a wall. As a result, Fitch, a major rating agency announced that it was placing the US in a rating watch negative area. The report said:
“The brinkmanship over the debt ceiling, failure of the U.S. authorities to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signal downside risks to U.S. creditworthiness.”
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. For one, odds are that the US will not default since the two sides will reach an agreement.
Janet Yellen, the head of the Treasury, has said that the US will run out of money on June 1. This means that there are still six weeks to reach an agreement. Historically, including in 2011, these deals are reached in the last day.
A common saying in the market recommends buying when other people are fearful. This is a strategy that has worked well in the past crises. For example, it worked well when the Covid-19 pandemic was starting. Also, investors who bought the dip during the Global Financial Crisis made strong profits over the years.
Metacade fundamentals are strong
For starters, Metacade is a new blockchain project that 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 like Axie Infinity and Decentraland.
According to Metacade’s white paper, the developers are now working on the game, which will be launched in the next few months. At the same time, they are working to have the token listed by leading exchanges. As we wrote here, it has already been listed by MEXC and BitMart.
Metacade has strong fundamentals since it is in an industry that is expected to grow in the next few years. A reccnt study estimates that blockchain games made over $4.6 billion in 2022 and that the volume will jump to over $65 billion by 2027. I believe that Metacade will have a market share in this industry.
Metacade price prediction
On the hourly chart, we see that Metacade price has moved sideways in the past few days. This price action is the same as that of other cryptocurrencies like bitcoin, ethereum, and solana. The coin has moved slightly above the ascending trendline that is shown in black. It has also jumped above the 25-day moving average while the Relative Strength Index (RSI) has 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.
The post Metacade price and the debt ceiling impasse opportunity appeared first on CoinJournal.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.