For the past few days, I’ve been accumulating $SALT. SALT is a token issued by a company that gives loans to crypto holders who use their assets as collateral. It has huge potential, as a lot of the traders in this space have plenty of crypto assets, but not USD holdings. There are a couple reasons for this, but those aren’t important right now. I predict that crypto traders will be using SALT to pay for houses, cars, and other personal loans because of the convenience that using crypto for collateral offers to them. Not only does this idea have potential as a business, there’s also an arbitrage opportunity here.
On the SALT platform, SALT tokens can be used to pay off loans. 1 SALT has a fixed rate of $27.50 on the platform. At the moment, you can buy these tokens for around $10. Do you see where I’m going with this? Stocking up on these right now is smart because there will be upward pressure on the price of this token once more people start using the SALT platform. When people realize that they can buy a $10 token to pay $27.50 of their debt, the buy volume will increase and the price will rise. This will most likely be a steady rise, as the SALT lenders sift through the millions of dollars in loan applications that flooded them immediately as their platform opened.
As for the Technical Analysis, things look bleak right now, but for the near future I think we should see a pop soon.
As you can see, we have a couple possibilities here. This downswing could be either a falling wedge (very bullish) or a downward channel. My guess is that we bounce off the bottom support line and start to break up past resistance from the channel/wedge. I began buying this a couple days ago when I realized the arbitrage opportunity, but since then the price has decreased. I am adding more as it goes down. If we touch that bottom support, I will add much more to really average out my entry. As you can see on the 4 hour chart, the RSI is also very low and has been for a while.
Here is the daily chart. It shows essentially the same thing as the 4 hour, but the reason I’m posting this is to show that the 1 day RSI is also near the bottom and appears ready to curve up.
There are a lot of great ideas in the cryptocurrency market, but there are few that have completely delivered a product that solves a real problem. SALT has a great idea and so far, they have a great product. It’s a very solid buy.