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Should You Buy Long or Short $USUAL? | AI Price Analysis & Insights 

 

By AI Analyst, reviewed by Market Steam Dec 18, 2024 

 

Image credit: usual.money/blog

 

USUAL, a decentralized fiat stablecoin issuer, has garnered significant attention. This report delves into whether investors should consider long or short positions on $USUAL, analyzing recent price movements, market sentiment, and expert insights.

 

Overview of USUAL

 

USUAL is a decentralized fiat stablecoin issuer that redistributes ownership and governance through the $USUAL token. The protocol operates with three primary tokens:

 

USD0: A stablecoin fully backed by short-term, liquid, and risk-free assets, ensuring no exposure to banks or counterparty risks. It is designed to be composable, permissionless, and transparent within the DeFi ecosystem.

 

USD0++: The USD0 liquid staking token, distributing rewards in the form of $USUAL tokens.

 

$USUAL: The governance token that rewards the growth of USD0, its adoption, and its usage within the ecosystem. It acts as ownership on the protocol's revenue—a governance token backed by real cash flows.

 

This structure aims to provide a stable and transparent financial ecosystem within the decentralized finance (DeFi) space.

 

Recent Price Performance

 

As of December 18, 2024, the official spot listing day on major crypto exchanges, $USUAL is trading at approximately $0.9511, reflecting a 9.99% increase from pre-market values over the past 24 hours. The token's market capitalization stands at around $411.25 million, with a 24-hour trading volume of approximately $719.28 million, indicating substantial market activity. 

 

Over the past 4hrs, $USUAL has exhibited significant volatility. The token reached an all-time high of $1.15 on December 18, 2024, and has since dropped to $0.9511, indicating hyper price swings. 

 

Market Sentiment and Community Insights

 

Community sentiment plays a crucial role in the cryptocurrency market, often influencing price movements. Platforms like CoinMarketCap provide sentiment indicators by tallying bullish and bearish votes from users, offering insights into the community's outlook on specific tokens. 

 

For $USUAL, recent discussions highlight both optimism and caution. Some community members anticipate significant price increases post-launch, driven by market cap projections and strong incentives for holding tokens. However, concerns about potential volatility due to whale activity and liquidity changes have also been expressed. 

 

Expert Price Predictions

 

Analysts have provided various price predictions for $USUAL, reflecting differing perspectives on its future performance:

 

CoinCodex earlier forecast that $USUAL could reach a high of $1.896801 in January 2025. 

 

Factors Influencing $USUAL's Price

 

Several key factors are likely to influence $USUAL's price trajectory:

 

1. Market Capitalization and Token Supply: With a circulating supply of approximately 431.58 million tokens and a maximum supply of 4 billion, changes in market capitalization can significantly impact the token's price. 

 

2. Whale Activity: Large holders, or "whales," can cause significant price swings by buying or selling substantial amounts of $USUAL, leading to increased volatility. 

 

3. Community Sentiment: Positive community sentiment and long-term holding can contribute to price stability, while negative sentiment may lead to sell-offs and price declines. 

 

4. Market Liquidity: Changes in liquidity, influenced by trading volume and exchange listings, can affect $USUAL's price stability and susceptibility to volatility.

 

Investment Considerations: Long vs. Short Positions

 

When deciding between long or short positions on $USUAL, investors should consider the following:

 

Long Positions: Investors anticipating a price increase may opt for long positions, banking on factors such as positive community sentiment, increased adoption of the USD0 stablecoin, and favorable market conditions.

 

Short Positions: Conversely, those expecting a price decline might consider short positions, potentially influenced by concerns over whale-induced volatility, market corrections, or broader economic factors affecting the cryptocurrency market.

 

The Bottom Line

 

Investing in $USUAL presents both opportunities and risks, characteristic of the broader cryptocurrency market. While the token has demonstrated significant growth post-listing on major exchanges including Binance and garnered community interest, factors such as market volatility, whale activity, and varying expert predictions suggest a cautious approach.

 

Prospective investors should conduct comprehensive research, assess their risk tolerance, and consider consulting financial advisors before making investment decisions regarding $USUAL.