The cryptocurrency market has been off to a strong start in 2023, with many major coins experiencing significant gains. Despite recent concerns from regulators, the market has shaken off this uncertainty and resumed its upward momentum. However, the crypto sector is still attempting to break key resistance levels, which could impact the market’s future direction.
Moving into the week of February 20, some cryptocurrencies are worth watching based on factors such as increased network activity likely to influence their price action. Therefore, below are Finbold’s top five cryptocurrencies to watch for the coming week.
Rocket Pool (RPL)
Rocket Pool (RPL) is a decentralized Ethereum (ETH) staking pool that has gained prominence as the latter’s blockchain continues to record increased development activity. Specifically, the value of Roekct Pool has been rising as Ethereum investors look forward to accessing their staked ETH ahead of the Shanghai upgrade slated for March 2023.
Picks for you
In this line, Rocket Pool is among the destinations where investors have been locking their ETH, and the withdrawal is a much-anticipated event. As one of the leading staking services for Ether, the Shanghai upgrade represents a significant opportunity for the Rocket Pool network, which has already achieved over $1 billion in total value locked in.
At the same time, RPL is an asset to watch, considering investors are also trialing the withdrawal process after the Zhejiang testnet went live. By press time, RPL was trading at $54.68 with daily gains of about 7%.
The bullish sentiment around RPL is also exhibited in the asset’s technical analysis. A summary of the one-day gauges on TradingView aligns with ‘buy’ sentiment at 11 while moving averages are for ‘strong buy’ at 10.
Filecoin (FIL)
After facing significant challenges throughout 2022, Filecoin (FIL) has made impressive gains since the start of 2023. The growing excitement behind the launch of smart contracts on the network under the Filecoin Virtual Machine (FVM) on March 1 could be one of the reasons for the continued increase in value.
To celebrate the release of FVM, Filecoin is organizing a one-day event called The Countdown to FVM, which will highlight FVM content and builders’ projects. Notably, the FVM is expected to be interoperable with the Ethereum Virtual Machine (EVM), which will allow for cross-chain bridges and enable easy transfer of crypto funds from one blockchain network to another.
By offering compatibility with EVM and layer 2 blockchains, Filecoin seeks to reduce user gas fees and increase transaction speed, which could attract more users, especially in the decentralized finance (DeFi) community.
Indeed, Filecoin has come under the investors’ radar considering the price movement does not match onchain activities. For instance, the network’s transaction fees have dropped in recent days. Notably, Filecoin is worth watching, especially if investors will take out profits considering other onchain metrics are low.
At the moment, FIL is trading at $8.79 with daily gains of about 17%. The token also leads the crypto market with weekly gains of over 70%.
Elsewhere, Filecoin technical analysis is also bullish, with both summary and moving averages recommending ‘strong buy’ gauging at 17 and 14, respectively. Oscillators are for ‘buy’ at 3.
Hedera (HBAR)
Hedera (HBAR ) remains among the stand-out crypto projects of 2023, with the blockchain attracting organic growth and adoption on various fronts. Notably, HBAR has recently recorded gains after the network inked a partnership with Dell Technologies. In this line, the tech giant will be joining the Hedera Governing Council with plans to operate its node, develop customized applications, and support distributed ledger technology automation.
Elsewhere, one notable development is the launch of the Ashfall NFT series, a non-fungible token (NFT) collection that has generated much interest. Additionally, the ecosystem announced the arrival of a metaverse fund worth $1 million targeting Africa’s creative industry.
Indeed, these activities are reflected in HBAR’s price, but the main question remains if the network can sustain the gains, making it an asset to watch for the coming week.
By press time, HBAR was valued at $0.09 with daily gains of over 6%. However, the token is down over 5% on the weekly chart.
In the meantime, Hedera’s technical analysis remains bullish. Both summary and moving averages are for a ‘strong buy’ at 16 and 14, respectively.
XRP
XRP is at the center of the crypto sector’s attention mainly due to the ongoing high-profile legal case involving the U.S. Securities and Exchange Commission (SEC). In December 2020, the SEC filed a lawsuit against Ripple, the company behind XRP, alleging that the sale of XRP was an unregistered securities offering.
Notably, the case is witnessing increased activity when both parties await the summary judgment. At the moment, the focus has turned to the renewed push toward unsealing several documents likely to influence the outcome.
In particular, media personality and a senior contributor to Forbes, Roslyn Layton, filed a motion to gain access to the Hinman speech documents.
The petition submitted by Layton argues that the press and public possess a fundamental and powerful presumption to access judicial documents, as granted by both the First Amendment and Federal common law.
The Hinman speech, delivered in June 2018 by William Hinman, the then-Director of the SEC’s Division of Corporation Finance, highlights possible Ripple’s position regarding classifying securities. In the speech, Hinman deemed Bitcoin (BTC) and Ethereum as non-securities and could also be applied to XRP.
In this case, XRP remains an asset to watch, considering how the SEC will respond to the latest Layton motion, as it might give a hint in regards to what to expect in the summary ruling. By press time, XRP was trading at $ 0.39 with weekly gains of about 2%. At the moment, the token is attempting to reclaim and hold above the $0.40 resistance position.
Under technical analysis, a summary of the daily gauges aligns with ‘buy’ at 10, similar to moving averages at 9.
Bitcoin (BTC)
The maiden cryptocurrency has renewed its bullish momentum after emerging as one of the biggest casualties of the fresh regulatory uncertainty. The rally saw Bitcoin reclaim $25,000, with analysts maintaining that if the maiden crypto holds above the position, it could open room for targeting $30,000.
Bitcoin’s rejuvenation in the past week has been backed by several factors, such as increased onchain activity led by the adoption of the Taproot feature. As reported by Finbold, the Taproot adoption attained its all-time high rate at 13%. At the same time, the asset’s overall adoption is rising, with about 44 million addresses holding some BTC.
As the new week begins, the focus is on if Bitcoin can sustain its bullish momentum that has been backed by several technical indicators. For instance, as per Finbold’s report, Bitcoin recently hit another bull market cross. Historically, the level has been associated with sustained rallies.
Bitcoin is currently changing hands at $24,649 with daily gains of less than 0.5%. On the weekly chart, BTC is up over 12%.
Although Bitcoin has lost the $25,000 position, several market players maintain that the asset is bound to rally in the future. Particularly, Robert Kiyosaki, a prominent investor and author of the best-selling personal finance book “Rich Dad, Poor Dad,” believes as the U.S. dollar continues to lose value, Bitcoin might get a boost and rally towards $500,000 by 2025.
In the meantime, Bitcoin’s viability continues to be questioned, with Berkshire Hathaway (NYSE: BRK.A) vice chairman Charlie Munger calling for the asset’s ban.
Under technical analysis, Bitcoin is dominated by a bullish outlook. A summary of the gauges is for ‘buy’ at 15, while moving averages are for ‘strong buy’ at 13. Oscillators recommend neutrality at 8.
Overall, bullish sentiments continue to plague the crypto market as the sector attempts to establish momentum for sustained rallying. Notably, the highlighted assets are worth monitoring as they offer a glimpse of what to expect from the general market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
