The cryptocurrency market has entered 2023, still reeling from the ongoing bearish conditions that have characterized the sector over the past year. However, despite the depressing conditions, several digital assets stand out as having the potential to post gains bucking the broader market movement.
A few digital assets in particular are showing strong performances due to elements such as their rally potential and promising use cases. Therefore, below are the top cryptocurrencies to keep an eye on for the week of January 2nd.
BitDAO (BIT)
BitDAO (BIT) is a decentralized autonomous organization that has been in the spotlight for the past few weeks. The network caught the attention of the crypto sector after giving the green light to a $100 million buyback of its token. It is worth noting that BitDAO aims to support multiple projects in the fields of decentralized finance (DeFi), DAOs, non-fungible tokens (NFTs) and gaming through research and liquidity bootstrapping and funding.
As part of the buyback plan, BitDAO team will buy 2 million USDT worth of BIT for 50 consecutive days starting January 1st, 2023 for 2 million USD. Although the plan has received mixed reactions from community members, the development has had a positive impact on the token. Going forward, it will be of interest how the buyback plan affects BIT.
At the time of publication, BIT was trading at $0.35 with daily gains of over 2% over the past 24 hours. On the weekly chart, BIT is up over 20%.
BitDAO seven-day price chart. Source: Finbold
Elsewhere, BIT technical analysis is bullish with a daily readout summary on TradingView consistent with buying sentiment at 11. Moving averages also stand for ‘buy’ at 9, while oscillators are ‘neutral’ at 8.
BitDAO technical analysis. Source: TradingView
PancakeSwap (cake)
PancakeSwap (CAKE) has attracted the attention of cryptocurrency investors over the past few weeks as the token has performed well despite the overall bearish market conditions. Since many cryptocurrencies had problems, CAKE was able to finish the past few weeks in the green. However, the token was unable to sustain gains.
In particular, PancakeSwap (CAKE), one of the largest decentralized exchanges powered by Binance Smart Chain (BSC), has seen increased network development activity. For example, the platform has announced V2, which includes liquidity pools that can be used without permission and are only controlled by algorithms.
Indeed, CAKE remains a sign of focus considering that the recent correction could offer investors an opportunity to buy into the downside. In this case, if the token faces high buying pressure, it could act as a catalyst for another rally.
At press time, CAKE is trading at $3.16, having fallen less than 1% over the past 24 hours. On the weekly chart, the token corrected by almost 6%.
PancakeSwap seven-day price chart. Source: Finbold
After the recent correction, CAKE technical analysis is bearish with summary reading ‘sell’ at 14 while moving averages at 13 stand for a ‘strong sell’.
PancakeSwap technical analysis. Source: TradingView
Tone coin (TON)
Toncoin, the native cryptocurrency of The Open Network (TON) blockchain, has shown a sustained uptrend even as major digital assets struggled for an impressive price move. The token’s rally can be attributed to several factors, with increased network development and adoption ranking leading the way.
For example, TON drew increased interest after exchange gate.io announced support for the TON/USDT pair for futures. At the same time, the token has received support from the crypto wallet SafePal.
Additionally, Telegram’s decision to allow users to purchase blockchain-based identities with Toncoin also added to the rally. This new feature allows users to bypass the need for a SIM card. After the FTX cryptocurrency crisis, Telegram announced plans to create its own trading platform with the possibility of TON being used as a utility token.
Right now, TON is trading at $2.28 and is up over 5% in 24 hours while the asset is down almost 8% on the weekly chart.
Toncoin seven-day price chart. Source: Finbold
Otherwise, TON’s technical analysis is dominated by a neutral sentiment. TradingView’s one-day indicator summary is consistent with a ‘neutral’ sentiment at 10, while moving averages at 1 are also ‘neutral’. The oscillator indicators stand for “Sell” at 2.
Technical Toncoin Analysis. Source: TradingView
Bitcoin (BTC)
The first cryptocurrency is still consolidating after correcting by over 70% from the all-time high of nearly $69,000. Although the price prediction based on PricePredictions machine learning algorithm suggests that Bitcoin (BTC) is likely to correct further in January to trade around $15,000 on the last day of the month.
Additionally, there are indications that Bitcoin may be waiting for another rally, with data suggesting that despite BTC’s consolidation, the asset has posted a faster recovery following the FTX saga compared to previous capitulation events. This came after fears arose that the FTX collapse could lead to another Bitcoin correction. Additionally, pseudonymous crypto and stock market analyst Trend Rider noted that Bitcoin could take a bullish turn in the first half of 2023.
Interestingly, based on historical data, Bitcoin could also be poised for another bull run in 2023. According to an analysis by Aurelien Ohayon, CEO of strategy services platform XOR, Bitcoin has seen a bull run every four years. He noted that previous bear markets lasted a year and 2023 could be pivotal for Bitcoin.
Bitcoin is currently changing hands at $16,568, correcting less than 0.1% in 24 hours. Over the past seven days, Bitcoin has corrected slightly to 1.7%.
Bitcoin seven-day price chart. Source: Finbold
Furthermore, both Bitcoin bulls and bears have shown nearly equal strength and failed to propel the asset’s price in either direction. In particular, there are fears that the asset could continue to correct before finding a bottom.
Furthermore, Bitcoin technical analysis remains bearish, with a summary of daily indicators on TradingView showing the “sell” sentiment going at 14, while the moving averages at 13 stand for a “strong sell”. The oscillators remain “neutral” at 9.
Technical Bitcoin Analysis. Source: TradingView
XRP
The Ripple blockchain’s native token failed to break the crucial $0.40 support level as the token was unable to build on recent gains. Notably, XRP has shown bullish sentiment following smaller gains in the ongoing Ripple and Securities Exchange Commission (SEC) case.
Meanwhile, the case has produced no bullish triggers as both parties have submitted their final submissions. As the crypto community awaits the verdict, the lawsuit continues to witness new developments from interested parties.
Right now, the SEC has filed a filing attempting to seal several documents, while the presiding judge allowed crypto investment firm Paradigm to join the case.
Elsewhere, XRP is trading at $0.34 with an intraday correction of around 1.4%, while the asset is down over 2.6% on the weekly chart.
XRP seven-day price chart. Source: Finbold
Based on the token’s recent price action, crypto trading expert Michaël van de Poppe warned that the asset could potentially correct further after XRP failed to break the $0.37 resistance level.
With XRP exhibiting a sideways trading pattern, the token’s technical analysis remains bearish with a summary matching “Sell” at 15. At the same time, the daily moving average sentiment reads for a “strong sell” at 13.
XRP Technical Analysis. Source: TradingView
Finally, with the highlighted cryptocurrencies still showing promise, it is worth noting that their prospects for recovery are still subject to the impact of various external factors. In this line, the market is struggling with macroeconomic factors. At the same time, part of the market believes that the FTX collapse could drag on until 2023.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.
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