ForexMinute.com – Altcoin trades are indeed untrustworthy as they defy almost every technical pattern, and run largely on traders’ sentiments. Unlike Bitcoin, most of these coins are still in their infant stage which makes them more vulnerable to the market manipulations. Some altcoins meanwhile are growing with a rapid pace, like Darkcoin which, within months of its launch, has become the most influential cryptocurrency in terms of features and transparency.
Darkcoin’s growing popularity is also indicated by its acceptance at major Bitcoin exchanges – the latest being Cryptsy which records the maximum number of DRK trades at this time of writing. But in the meantime, its melting market cap is the concern to many. At this hour, Darkcoin market cap and price in US markets have fallen more than 70% since reaching its peak on June 3rd this year. [Source: www.coinmarketcap.com]
It is not only Darkcoin though that has suffered a massive decline in its market cap and prices over the year. Other altcoins, including Litecoin, Dogecoin and NXT, have also seen similar drops. But Dogecoin at least had a greater September thanks to the optimism generated by the implementation of AuxPoW, while Litecoin was simply neglected due to the growing Bitcoin adoption.
One of the major reasons that explains why Darkcoin is going through a “dark” phase is Bitcoin. The mother-of-all-cryptocurrency too had a depressive run at the markets lately, which have swift many traders back to trading regulated forex trades. Upon reaching the bottom, the cheap BTC prices hold more attention than those of altcoins. Every trader wants to board Bitcoin when it is being traded at season’s low. Thus, every other altcoin seems overshadowed by the master’s presence, not just Darkcoin.
Other reason is the presence of bearwhales, who don’t even spare a moment when it comes to sell Darkcoin at its seasonal peaks. For instance, we can notice how the coin’s market surged over 56% throughout August, but fell equally sharply next month amidst strong selling pressure. The Darkcoin market is still full of impatient and shaky hands.
Here is an example of such an event, taken from the Darkcoin price behavior in last 24 hours. [Source: www.coinmarketcap.com]
In this figure, we can see how a whale invests a huge chunk into the market, when DRK is being traded low against both BTC and USD. The market cap thus increases more than 20%. The price behavior normalizes for some time. Then all of a sudden, the invested amount is sold out from the market, taking Darkcoin market cap down. Within a matter of few hours, an investor (or group of investors) gets away with decent profits.
This almost is the scenario of every alternate cryptocurrency out there, but Darkcoin turns out to be among the only trustworthy ones when it comes to long-term holdings. If the market has bearwhales, it also has a bullwhales supporting it from the foundation.
So where does Darkcoin stand now? We are pretty sure it is being considered both as an investment tool and an anonymity-offering cryptocurrency. As Darkcoin’s development reaches to new highs in coming days, it will surely attract venture capitalists, investors and merchants towards itself, thanks to the ongoing restrictions over the use of cryptocurrencies.
It is time to ignore the periodic declines, which are mostly driven by short-term profiteers. A big picture suggests Darkcoin to be the worthiest investment after Bitcoin. Think long-term and this coin will surely provide you decent results, rather than a speculative “to the moon” tagline.
To contact the reporter of the story: Yashu Gola at yashu@forexminute.com
