Benchmark, a Wall Street broker, recently stated that the sell-off in altcoins led to a decline in DeFi Technologies’ stock. The drop was further amplified by the release of a negative opinion piece. Despite this, Benchmark believes that the sell-off presents a great buying opportunity for investors.
The analyst at Benchmark, Mark Palmer, pointed out that DeFi Technologies’ stock had surged by over 330% since the beginning of May. However, it experienced a sharp decline, losing almost half of its value in just two days. The stock managed to recover some of these losses the following day. Most of the exchange-traded products (ETPs) offered by DeFi are focused on altcoins. Therefore, the recent slump in these tokens negatively impacted the stock price.
Palmer mentioned that while some traders may have sold off their positions to secure profits after the significant rally, the sell-off seems excessive. He believes that the stock has been significantly repriced, presenting an appealing opportunity for investors to buy in. As a result, Benchmark reiterated its buy rating on the stock and set a price target of C$3.
The shares of DeFi Technologies initially dropped by 17% in early trading on Thursday, hitting around C$1.93 before bouncing back to approximately C$2. Despite the volatility, Palmer emphasized that fluctuations in altcoin prices are common in the crypto market.
In response to a negative article published by CoinSnacks, DeFi Technologies labeled it as a “misleading short and distort report.” The company defended itself against the claims made in the article, suggesting that it may have contributed to the recent sell-off.
Overall, Benchmark’s analysis indicates that the sell-off in DeFi Technologies’ stock may have been exaggerated, offering investors a favorable opportunity to enter the market at a discounted price. While the crypto market is known for its volatility, Palmer remains optimistic about the long-term prospects of the company. Investors who believe in the potential of DeFi Technologies may find the current price levels attractive for investment.