I mentioned in an earlier post that if the market sees another large downturn i will be looking to buy projects in the Defi/re-staking narrative within the Ethereum or Eigen ecosystem.
I have narrowed it down to 5 projects.
Ondo, Rez, Omni, Etherfi, ZRO.
I have included price targets for each later in the post.
My main target range is 410-450 billion in the Total 3 market cap (Market cap excl BTC/ETH)
The market would need to drop another 15-20% to reach my target zone (Shown below)
A 20% drop in the total Defi market cap would also see a drop to a previous level of resistance which might become an area of support👇
The market cap might not drop to this point, I am in no rush to accumulate the projects i have listed above, if we don’t see another downturn in the market then my plans will be put on hold.
I think with the current economic uncertainty and other factors there is a chance the price targets I have set could be hit in the comings weeks-months.
I have set price targets for the projects i have chosen to accumulate at roughly 15-20% below their current market price (ZRO 20%-30% lower)
Before we go further i just want to explain why i have chosen these projects.
My main reason is because they dont have large cliff unlocks for VCs in the next 3-6 months (Shown later)
They are all part of a narrative (Defi, re-staking, liquid re-staking) that i believe will be pushed in the coming months, probably towards the end of 2024.
They are all VC and exchange backed, they will receive a lot of hype in the paid for media and will be promoted by exchanges.
I have done a lot of research into re-staking, mostly in regards to Eigen and Ethereum, it is why i have not included tokens from other chains.
My plans are simple, if price drops into my target range I will buy SPOT.
I have 2 price targets.
With the funds I have allocated for each project I will allocate 30% of that at the higher price target, if price falls further I will use the remaining 70% at the lower price target.
My total allocation for this will only make up for a small % of my crypto portfolio, it is higher risk-reward speculation.
Project by project.
For reference,
When I mention cliff unlocks below I am referring to unlocks that go to investors, core contributors, advisors, strategic partners (Holders who will likely sell), these unlocks will also increase the circulating supply of tokens.
Ondo
Price targets,
Upper-$0.4950
Lower -$0.462
Ondo Cliff unlocks start at the end of Jan 2025👇
ether.fi
Price targets,
Upper-$1.07
Lower-$1.005
ether.fi cliff unlocks start at the end of March 2025👇
Omni
Price targets,
Upper- $5.8
Lower-$5.5
Omni cliff unlocks start at the end of April 2025👇
Renzo(Rez)
Price targets,
Upper- $0.0288
Lower-$0.0271
Renzo cliff unlocks start end of April 2025👇
LayerZero(ZRO)
My accumulation range for ZRO is lower than the projects above, i feel it is more overpriced.
Price targets,
Upper- $2.625
Lower-$2.28
ZRO cliff unlocks start in June 2025👇
These are just my plans, I am not encouraging you to do the same.
I am not using the rent money to invest in these projects.
I don’t believe any of these projects are a breakthrough for crypto, they are made so that VCs and exchanges can profit off retail fomo, i am just playing the zero sum game.
I don’t have any timeframe for holding, it will depend on the market, if my buy targets are hit and the market rallies and my investment has 2-3x I will take part/full profits.
If sh1t hits the fan (economy, conflict) then i will just cut my losses, i wont just hold if there is a clear sign that the market could drop a lot lower.
This is neither a get rich quick idea nor a long term belief in any of these projects, it is solely about my cynical view of the direction crypto is heading/being led.
I am sure people will say there are other projects that might be better for whatever reason, this is just my plan (Based on research).
If you found this informative a like is always appreciated 🤙
Peace.
