Credit rating agencies are keeping an eye on the ongoing debt ceiling debate in Washington.
Fitch has placed the US in the Ratings Watch Negative Region.
The debt ceiling crisis has created a good buying opportunity.
Metacade (MCADE), like other cryptocurrencies and stocks, is under intense pressure as the debt ceiling crisis escalates. The token is trading at $0.022, well below its all-time high of $0.046. Other cryptocurrencies are also in the red. Bitcoin retreated from a year-to-date high of $31,000 to below $27,000.
The Opportunity of the Debt Ceiling Crisis
Metacade prices have not retreated due to poor fundamentals. Rather, it fell as risk-off sentiment continued among market participants. This is evidenced by the fact that the US dollar index rose to its highest level in over a month. The much-watched VIX index also rose by double digits.
The main concern is that the US government will default on its debt in June if Democrats and Republicans fail to reach a deal. According to recent reports, negotiations between the two negotiators have hit a wall. As a result, major rating agency Fitch announced that it would place the United States in negative territory for ratings monitoring. The report said:
“The brinkmanship of the debt ceiling and the failure of U.S. authorities to meaningfully address medium-term fiscal challenges leading to rising budget deficits and a growing debt burden point to downside risks to U.S. creditworthiness. ”
I believe the debt ceiling issue has created a good opportunity for investors to buy dips in major financial assets such as Metacades and equities. First, the two countries will reach an agreement, so it is highly likely that the US will not default.
Treasury Secretary Janet Yellen said US funding will run out on June 1. That means there are still six weeks before a deal is reached. Historically, including 2011, these deals close on the last day.
A common saying in the marketplace is to encourage others to buy when they are feeling insecure. This is a strategy that has worked well in past crises. For example, it worked well when the COVID-19 pandemic started. And investors who bought dips during the global financial crisis have made big profits over the years.
Metacade Fundamentals Are Strong
First, Metacade is a new blockchain project that raised over $16 million in token sale. Developers are building gaming products that are expected to be far superior to existing offerings such as Axie Infinity and Decentraland.
According to Metacade white paper, The developer is currently working on the game and it will be released in the next few months. At the same time, they are working to get this token listed on major exchanges.as you wrote here, Already listed by MEXC and BitMart.
Metacade has strong fundamentals as it belongs to an industry that is expected to grow in the coming years.Recent study Blockchain game revenue is expected to surpass $4.6 billion in 2022 and surpass $65 billion by 2027. I believe Metacade will gain market share in this industry.
Metacade Price Prediction
On the hourly chart, we can see that the Metacade price has been moving sideways for the past few days. This price action is the same as that of other cryptocurrencies such as Bitcoin, Ethereum, Solana, etc. The coin has just broken above the uptrend line shown in black. The Relative Strength Index (RSI) also rose above its neutral point and above its 25-day moving average.
Therefore, we expect MCADE price to remain strong and make a bullish breakout later this month. If this happens, the next level to watch will be $0.024. Above that level, we will see resistance at $0.30.