CV Market Watch™: Metal, The Only Coin in the Green
Sometimes, coins defy the market - but is Metal really that strong?
At certain points, coins will display unusual strength in a falling market. The most current example is the recent spike in the price of Metal (MTL), up more than 16% in the past 24 hours to around $4.
Unfortunately, the rise in MTL prices may be just a fluke. Unusually high volumes, though not record, have taken the coin higher, but MTL is still trading near a bottom.
MTL is an example of a high-volatility coin, where similar moves in both directions are not that unusual. A rushed behavior driven by FOMO would be a mistake in the case of MTL. The extremely volatile chart shows this coin is traded a lot, with dramatic spikes and drops.
Others believe the strength of MTL will be in its use case:
Metal will be hugh ios app coming in Q1 so probably 4x then! $mtl#bitcoin#altcoin— Cryptoscared (@cryptoscared) 5 лютого 2018 р.
The only problem is, the Metal pay app, that would link a phone number to a crypto wallet and allow global payments, is still in the preliminary phase - hence the very speculative nature of MTL.
The Metal payment app recalls another, already complete payment system, that of the Gulden (NLG) coin, currently dropping to $0.15. But the Gulden digital asset already has an app and banks that service the system for liquidity and uploading funds.
The price spike in MTL looks like two things: a breakout from the lows, or a one-off event fueled by social media hype. As MTL rises, it may expect a few more days in the green.
Yet the price spike was more than 35% at one point, shrinking toward 16%, so the pump may have been short-lived. At this point, MTL is still low-priced enough to warrant a small investment - but it would be a coin that also needs trading to make the best gains. MTL may not be a good choice for early crypto investors.
At the moment, MTL is still not used for its intended purposes as a means of rewards and payments, so buying it should be done with some amount of skepticism, and after being comfortable with Binance trading.