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.

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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:

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.

Metal's Spike

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.