The US may be heading towards a self-inflicted recession because of Donald Trump’s tariffs and the Department of Government Efficiency (DOGE) job cuts. Polymarket data shows that the odds of a recession have jumped to 41%, while Kalsh puts the figure at 38%.
While Kaslhi and Polymarket numbers are below 50%, they are rising rapidly. Economists at PIMCO have boosted their recession odds to 35%. A recession would be good for cryptocurrency and stocks as it would push the Federal Reserve to start cutting interest rates.
Recent major events like the COVID-19 pandemic and the Global Financial Crisis (GFC) have shown how risky events do well when there is a major black swan event.
This article explores some of the top crypto tokens to buy as recession odds rise in the US. They include PancakeSwap (CAKE), Binance Coin (BNB), and Polkadot (DOT).
PancakeSwap (CAKE)
PancakeSwap is one of the best crypto tokens to buy during a recession because the Fed’s interest rate cuts would lead to higher digital coin prices. This, in turn, would lead to higher volume in decentralized exchanges (DEX).
PancakeSwap has become the biggest DEX network in the BNB Chain ecosystem, and its volume is rising rapidly. Its weekly volume jumped by 22.6% to $11.1 billion, bringing its cumulative total to over $1.14 trillion.
The weekly chart below shows that the CAKE price has consolidated in the last three years. It has remained between the support at $1.3953 and resistance at $5. That is a sign that it is in the accumulation phase of the Wyckoff Theory. A simple move to the upper side of the resistance would mean that the PancakeSwap price has doubled from the current level.
Binance Coin (BNB)
BNB is also one of the top crypto tokens to buy if the US heads towards a recession because of its strong technicals and fundamentals. The key fundamental is that Binance, the biggest crypto exchange in the industry, established it.
Further, the BNB Smart Chain (BSC) is working on several upgrades to improve its ecosystem in the long term. The developers will activate the Pascal hard fork this week that will introduce more Ethereum features to the network. Two more upgrades that will make it faster will be executed by April.
BSC Chain has become the biggest competitor to Solana and Ethereum. Its DEX volume has even done better than the two this week. Developers are moving from Solana because of its emphasis on meme coins and Ethereum because of its slow speeds and higher transaction costs. The BNB price has also formed a cup and handle pattern, pointing to more gains in the long term.
Polkadot (DOT)
Polkadot is also one of the best altcoins to buy if there is a recession. Grayscale has applied for a spot DOT ETF, which has a high chance of being approved. Also, the developers are working on implementing Polkadot 2.0, which will introduce more features in the network.
The most important feature will be the ability for developers to build on Polkadot without the hustle of going through the expensive parachain auction process. That move will bring more developers to the network as they seek to benefit from its scale and low transaction costs.
Technically, DOT price has formed a quadruple bottom pattern on the weekly chart. It has also formed a falling wedge pattern, pointing to an eventual surge to the key resistance point at $11.90, up by almost 200% from the current level.
Read more: Polkadot price prediction: here’s why DOT may surge 500% soon
Other altcoins to buy in case of a US recession
There are many cheap crypto tokens to buy and hold if the US sinks into a recession. Pepe is a major meme coin that has formed a double-bottom and a falling wedge chart pattern, pointing to a strong bullish breakout in the long term.
The other ideal crypto coin to buy is Berachain (BERA), a recently launched network whose ecosystem is growing rapidly. DeFi Llama data shows that the total value locked in the Berachain network has jumped to over $3 billion, a trend that has continued to happen.
Sonic is another crypto to buy. Formerly known as Fantom, the ecosystem has continued to fire on all cylinders as the total value locked in the network jumps. Sonic has a high chance of catching up with other popular layer-1 and layer-2 networks like Sui, Solana, and Base.
The other top crypto tokens to buy are US coins that have a higher chance of a spot ETF approval. Notable names are crypto coins like Hedera Hashgraph (HBAR), Ripple (XRP), Chainlink (LINK), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE). These tokens will likely do well in the next few years.
The post 3 crypto tokens to buy as US recession odds jump ahead of FOMC appeared first on Invezz
