The cryptocurrency industry stabilised on Wednesday morning as some investors moved in and bought the dip. Banana Gun (BANANA) rose by over 42% to $15.7, bringing the seven day gains to 10%. Onyxcoin (XCN) token jumped by 17.15% to $0.01352, while Hedera Hashgraph (HBAR) jumped by 7% to $0.20. Other top-performing coins were Arkham (ARKM) and Bounce Token.
Bitcoin price rose to $83,000
The first main reason why altcoins like Banana Gun, Onyxoin, and Hedera Hashgraph rose is that Bitcoin bounced back from this week’s low of $76,000 and reached a high of $83,000. In most cases, altcoins do well when the price of Bitcoin is rising.
Bitcoin rose as investors reacted to the easing trade tensions between the United States and Canada. In a statement on Tuesday, Donald Trump vowed to double his steel and aluminium tariffs from Canada, citing the decision by Ontario governor to hike electricity prices by 25%.
Trump, irked by that decision, warned that his 50% tariffs would kick in today. He also hinted that he would more than double car import tariffs, a move he argued would decimate the country’s auto sector.
Bitcoin and altcoins like Banana Gun, Onyxcoin, and Hedera Hashgraph rose after the commerce department secretary said that he would talk with Doug Ford, Ontario’s governor, on these tariffs today. He also suspended his decision to hike electricity prices.
Buying the dip
Altcoins like Banana Gun, Oxycoin, and Hedera Hashgraph price rose as investors bought the dip after these tokens crashed.
Besides, the three have some solid fundamentals behind them. For example, odds that the Securities and Exchange Commission (SEC) will approve a spot Hedera Hashgraph ETF have remained high this year. Such an approval would likely lead to more demand from investors. Further, SWIFT Network announced a partnership with Hedera last week.
Banana Gun price jumped as investors bought the dip because of its strong fundamentals. For example, Banana Gun’s ecosystem had a daily volume of $44.8 million on Saturday. Most of this volume was in Base, the layer-2 network by Coinbase.
There’s not much to cheer on in this market, but let’s focus on the good things that happen! Pity doesn’t help anyone.
Banana Gun had a great weekend volume-wise due to a hyped launch on Base. Is Base picking up in general?
Banana Gun totaled a volume of $44.8M on saturday,…
Onyxcoin price rose after it was listed by Binance Futures Next project, where users can vote for its listing.
Dead cat bounce
The third reason why these altcoins like Banana Gun, Onyxcoin, and Hedera are rising is that this may be a dead cat bounce (DCB). A DCB is a situation where an asset in a freefall makes a brief rebound and then resumes the downward trend. These bounces are often seen as bull traps because they trick retail traders to buy the dip and then the prices resume the downtrend.
Potential catalysts for Banana Gun, Hedera, and Onyxcoin
Looking ahead, there are two potential catalysts for these coins. First, the US will publish the latest consumer inflation data on Wednesday that will play a role in the next Federal Reserve interest rate decisions. Second, the Lunar Eclipse will happen on March 13/14. In most cases, assets tend to rise after the eclipse happens.
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