I have been observing with concern, how some people express negative sentiments on some coins that arise from promising projects by comparing them to other coins that pumped apparently immediately they were launched. Thus, presenting another perspective may allay some fears concerning projects like $USUAL
Let me point out that in the arena of crypto trading, sentiments contribute a lot to the volatility of a token, and can be used for two things:
1. Negative Sentiments spark panic selling and drive down value of tokens and,
2. Positive Sentiments introduce fear of missing out (FOMO)
Stating these facts raises the question 'what do sentiments seek to achieve?'
The aim of sentiments may be guessed from the points above, but let me hit the nail on the head. When sentiments are expressed this is what they do:
1. Negative sentiments push traders to run scared and start to sell off their stock, consequently driving down the value of the token. This panic sale makes a token cheaper for whales who capitalize on such fear to buy in at a lower price level, while those afraid of losing in the short term rather lose a substantial amount of their initial investment, because they end up selling cheaper in an attempt to cut losses. This is not to say that cutting losses is a bad idea, that will be a topic for another day. However, I am talking about traders selling prematurely because some short-sighted post sparked the wrong reaction. Therefore, know this before you end up missing out because you exited at the wrong time (I am sure those who held unto their $BTC a year ago are smiling about now). That is what endurance looks like.
2. Positive Sentiments encourage traders to buy the token being hyped because they anticipate something great. This interaction drives the price of the token up as the purchasing triggers demand for the token upward. And this is the point it could get dicey: some traders who jumped in early begin to make minimal profits triggering the psychological urge to sell off. This keeps the price stagnant for a while, as some feel it's their time to cash in others feel they are yet to hit the motherlode. Therefore, positive sentiments help drive a positive outlook for a token.
In concluding on Market Sentiments, both negative and positive sentiments play a crucial role in driving the demand and subsequently the price of tokens, as captured above.
Now on $USUAL not pumping in the 1000% + percentile like other coins on early launch: many people are doubting the promising future of the $USUAL simply because it did not pump to 1000+% in it's early days. Straightforward, I say it's still early days. However, far from gut feelings I will present two arguments that support why is 'early days yet' with $USUAL.
1. There are coins that did not shoot up astronomically immediately after launch. Some took months and years to experience a massive surge in value ($AVA, HBAR etc.). These are projects that took months to reach where they are today. Hence, the long run is more profitable, especially holding in Spot trading.
2. The price and subscription of $USUAL at spot listing showed a lot of promise and resistance to market trends. The pre-market price as well as it's steady performance immediately after listing, especially sustaining stable and rising levels as other coins where sinking including giants like $BTC and $ETH proofed more than enough that $USUAL is a viable project that needs all the support it can get to reach it's true potential as a stable coin issuer that gives back to it's community.
Always remember, this is not financial advice. DYOR
Stay positive as $USUAL.