Cryptocurrencies to look on during the week of 6 March 2023
The cryptocurrencies market has taken a downturn as we enter the week of March 6, with many assets experiencing corrections. The drop in momentum was caused by macroeconomic factors as well as liquidity concerns at digital asset-friendly Silvergate bank.
It is difficult for investors to decide which cryptocurrencies to focus on in the midst of increased volatility. As a result, Finbold examines the most promising cryptocurrencies to keep an eye on in the coming week, given the current market conditions.
Optimism (OP) has increased due to widespread adoption. The token has risen in value following the announcement by cryptocurrency exchange Coinbase of the launch of its layer-two network for Ethereum based on Optimism technology. As a result of the news, Optimism has recorded multiple periods of gains for the OP token.
Coinbase will join Optimism as a core developer as part of the collaboration, which is increasing investor confidence in the layer two blockchains. Based on recent gains, OP has been added to Finbold’s list of cryptocurrencies to watch in March.
Aside from partnerships, on-chain data shows that Optimism outperforms its closest competitors in key metrics. Notably, data published by crypto analysis platform Massari indicates that Arbitrum and Optimism retained 35% to 45% of new users in the short term, but Optimism had a higher long-term user retention rate.
With the crypto market still in flux, it is critical to keep an eye on OP’s performance, especially if investors intend to profit from the token. OP has gained more than 1% in a single day to trade at $2.46.
OP technical analysis, on the other hand, provides mixed signals, with both the summary and oscillators recommending neutrality at 2 and 10, respectively. Moving averages for selling are set at 8.
GateToken (GT) is the native token of crypto exchange Gate.io, and it has recently seen a price increase as a result of the platform’s potential expansion into new jurisdictions. The recent price increase could be attributed to Gate Group’s recent application for a Hong Kong Trust or Company Service Provider (TCSP) license, which would allow the exchange to expand its presence and services in the region.
This move is consistent with a growing trend of crypto exchanges prioritizing compliance as regulators tighten their global oversight of the crypto market. In this case, the regulatory outcome from Hong Kong authorities is likely to have an impact on the value of GT in the coming days.
Despite a recent price rally, GT has shown consistent corrections on the daily chart and is currently trading at $4.97.
Meanwhile, GT’s technical analysis is overwhelmingly positive. A summary of TradingView’s one-day gauges shows ‘buy’ at 12, while moving averages’ suggest strong buy’ at 11.
The ongoing network development activities are increasing investor interest in Synthetix Network (SNX), a decentralized finance (DeFi) protocol. Following security audits, Synthetix, which enables the issuance of synthetic assets on the Ethereum (ETH) blockchain, recently deployed version 3 (v3) on the Ethereum mainnet. V3 will, according to the developers, have a more efficient architecture that will allow for faster and more complex development of decentralized financial applications.
The enhancement will also create a liquid market for any financial derivative, from traditional to exotic markets such as no-loss lotteries. The update will also include simplified staking and differentiated debt pools, which will allow network stakeholders to supply collateral to specific asset pools and receive fees without being exposed to all Spartan Council-supported assets.
As a result, SNX is one of the cryptocurrencies to keep an eye on, with a particular focus on whether it can maintain its gains after emerging as the top weekly gainer.
By press time, SNX was trading at $3.15, up about 6% on the day. The token is up 25% on a weekly basis.
Under technical analysis, the one-day gauges on TradingView are mainly bullish. The summary and moving averages are for a ‘strong buy’ sentiment at 16 and 14, respectively.
Maker (MKR) has largely ignored the broader market downturn to rank among the top-performing assets on the weekly chart. Gains in MKR, the Maker Foundation’s governance token, can be attributed in part to Maker DAO’s recent deployment of lower borrowing fees on March 1.
Following the development, the MKR trading volume increased by at least 200%. These changes have increased interest in Maker’s borrowing options, which has benefited MKR.
Maker is currently trading at $970, up nearly 10% on the day.
The token’s technical analysis also replicates the positive sentiment around MKR. A summary of the one-day gauges indicates a ‘strong buy’ at 16. Moving averages are also for ‘strong buy’ at 14.
The first cryptocurrency fell sharply in response to news that digital asset-friendly lender Silvergate Bank may go out of business due to liquidity issues. The situation caused panic in the cryptocurrency market, with Bitcoin (BTC) losing nearly $1,200 in an hour. The move rendered the digital asset’s momentum for 2023 invalid.
As a result of the fallout, analysts labeled the Silvergate situation as Bitcoin’s short-term sentiment killer. Because of the uncertainty, Bitcoin fell below the $23,000 demand level during the correction.
Despite the bearish sentiment, Bitcoin is demonstrating early signs of its ability to address traditional finance sector flaws such as inflation. According to a Finbold report, Bitcoin’s inflation rate of 1.7% is now three times lower than that of the US dollar.
Bitcoin is still an asset to keep an eye on because its price movement has always influenced general market sentiment. As the new week begins, investors will be watching how the Silvergate situation plays out and how it affects Bitcoin.
Furthermore, the price of Bitcoin remains in the grip of the bulls and bears. The price of the cryptocurrency is currently $22,443. BTC is down nearly 4% on a weekly basis.
On the other hand, Bitcoin technical analysis still has traces of bullish sentiments. A summary of the one-day technicals on TradingView is for ‘buy’ at 11, the same as oscillators at 5. Moving averages are recommending ‘sell’ at 8.
Overall, the success of cryptocurrencies is dependent on the efforts and developments of their teams, as well as external factors such as the crypto market and macroeconomics.
The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.