In the recent lead up to an all time high, the CMT token has recently seen great gains to a point of it recording double digit percentage price growth even when almost all other crypto prices were in the red. So now with it being the third consecutive day of 'large' losses, there is much talk and impatience in social media of people who may have bought recently on the hype only to be the ones bearing the brunt of the current correction.... yes it is just a correction, let me explain why.
Simple Technical Analysis. It can be seen in the graph below that the at its peak, the price of CMT was far above the well respected (by seasoned traders) 15 Exponential Moving Average or EMA line in blue. If you look further down the trend line, you can see that historically this particular token has extraordinarily been following the 15 EMA. And every time it does stray too far above this line, it will almost inevitably come back to the 15 EMA. Notice also that it does not seem to drift too far below the line. In fact it rises higher than it falls. What a gem this CMT is.
At the time of writing, it can be seen at the yellow arrow we are currently at the 15 EMA and holding. Unless there is some drastic change in the marketplace, everything is 'as normal' and there really is no need to panic. There is simply a correction happening.
So the author expects the price not to drop too much further and in fact, this may be the most opportune time to buy. Here are three additional reasons:
Well just yesterday there was a selling out of 10,000 CMT specific 'mining' units (called CMT Cube) within an hour of being released for sale. Cybermiles via its launch of the world's first Crypto only payment website (Blocktonic.io) is giving back 100% of the purchase price of these CMT Cubes. The catch here is that this refund will only work once the Cube is turned on after the CMT mainnet launch which is towards the end of the year. The significance of this is that there will be an increased amount of demand for CMT leading up to the launch of the mainnet when people start to realise that the more CMT in their possession the greater the likelihood of better returns to their CMT Cube purchase. In addition, the 19 Validators competing for their share of CMT Cube holders' staked coins will inevitably continue to add to their current volume of CMT held.
Large amounts of CMT is beginning to be taken out of circulation via the Cybermiles own e-commerce website Blocktonic.io where you are exchanging your CMT tokens for goods and a refund in ETH. Less tokens in circulation means less supply to meet demand and this should increase token price in the medium to long term. To learn how this system works read this: https://steemit.com/cryptocurrency/@cryptoyum/blocktonic-payment-refund-how-it-works-in-4-easy-steps
Cybermiles have been on the road. Winning the conference attendees' choice award for most promising blockchain project in San Francisco and the currently ongoing six city China meetups will surely be productive in establishing better networks for future growth. This will likely create added demand for CMT tokens too.
Note: All opinions expressed in this article are the author's own and worth sharing however the author is not a financial advisor and the opinions expressed in this article are not meant to be financial advice. Please do your own research before making any decisions.