As the first week of 2023 draws to a close, most cryptocurrencies are trading in the green after a massive sell-off over the past year. Some assets are specifically intended to build on the fuel that inspired a mini rally as a foundation for sustainable gains.
In particular, several digital currencies are already standing out, with the help of the specific story they are driving along with their growing use cases. So, here are the top five cryptocurrencies to watch during the week of January 9th.
The major cryptocurrency is leading the market in gains after getting support from positive US employment data. Although Bitcoin (BTC) traded on past highs, the crypto posted solid gains in 2023. Meanwhile, as the new week begins, Bitcoin price remains in focus, especially as more macroeconomic data is expected to come out. Along these lines, the upcoming Consumer Price Index (CPI) and inflation data are likely to influence the Fed’s monetary policy and thus put assets like Bitcoin at risk.
Notably, as reported by Coinphony, cryptocurrency trading expert and analyst Michaël van de Poppe stated that inflation data is likely to be good and could signify good luck for the asset. Overall, the analyst noted that Bitcoin has higher odds of breaking in the coming week after testing key resistance levels with a target of $17,000.
At the time of publication, Bitcoin was trading at $16,943 with a daily gain of about 0.1%. On the weekly chart, Bitcoin is up over 2%.
Based on the recent price action, Bitcoin is attempting to break out of the sideways trading pattern and break above $17,000. However, it should be noted that going into 2023, Bitcoin is still facing a cloud of uncertainty, given the threat of an extended sell-off from incidents like the stock market crash. FTX and Fed policy following. However, Bitcoin will look to build on the milestones achieved in 2022 despite the bear market.
From a technical analysis perspective, Bitcoin is giving mixed signals on its daily metrics. The summary is consistent with “neutral” at 8, while the moving averages are for “buy” at 8. Elsewhere, oscillators are recommending a “sell” sentiment at 3.
The decentralized finance (DeFi) token appears to be defying recent concerns about its future due to close ties to now-defunct cryptocurrency exchange FTX and its founder, Sam Bankman-Fried. In fact, the concern drove SOL down to $8. However, part of the current recovery has seen Solana see capital inflows of more than $1.5 billion within the week of January 6th.
Although SOL has historically rallied in line with the general market, the recent price action is strongly correlated with the hype surrounding the Bonk (BONK) cryptocurrency meme trying to imitate the Shiba Inu (SHIB). Notably, after the issuance of BONK to the Solana community and non-fungible token (NFT) creators, SOL recorded an increase in value and trading volume.
As we head into the new week, SOL therefore remains an asset to watch and BONK’s hype sustains. This is important since SOL has no other potential specific bullish catalysts for a rally while the effects of the FTX collapse remain; The network is also facing scrutiny due to the constant outages that have marked the platform in 2022.
At press time, SOL, or “Ethereum (ETH) Killer,” is trading at $13.85 with a gain of nearly 5% over the past 24 hours. On the weekly chart, SOL is up over 35%.
Amidst the short-term gains with SOL, the machine learning algorithm came into play price forecast It indicates that SOL is likely to be in the consolidation phase at the current price at the end of the month. Forecasts are that SOL will trade at $13.75 on January 31, 2023.
Elsewhere, Solana’s 1-day technical analysis summary indicates a “buy” sentiment at 10, while the moving averages are also “buy” at 8.
Lido Dow (LDO)
Lido DAO, the liquid staking solution for Ethereum, has increased in value and market cap, surprising most investors. Although the original Lido Finance token also moved in line with the general market, the latest spike could be linked to the upcoming Ethereum Shanghai upgrade as the developers set a date before March.
Notably, the upgrade is expected to release deposited Ethereum after the merge update. In this regard, Lido Finance accounts for nearly 25% of the stake in Ethereum, making it one of the largest liquid stake platforms for Ethereum. Therefore, with more people potentially withdrawing their deposited Ethereum after the upgrade, the Lido platform is likely to benefit as potential investors use their platform to invest.
Accordingly, going into the week of January 9, investors will need to keep an eye on the asset to see if it sustains the gains. At the moment, the token faces the possibility of selling pressure, with the potential for investors taking profits to remain high.
At the time of publication, the Lido DAO is trading at $1.61 with a daily gain of nearly 8%. The weekly chart shows that LDO rose above 60%.
Based on TradingViews Technical Analysis LDO is facing the bullish trend. The daily metrics summary is “strong buy” at 16, similar to the moving averages at 14. Oscillators are “neutral” at 8.
Ethereum Classic (ETC)
The recent rally of Ethereum Classic (ETC) has seen the Ethereum fork regain $20, a position that is a key support level for the asset. While the driver behind the rally remains murky, ETC has seen an increase in network activity that could influence price action.
Notably, the hash rate of the network has been increasing recently, which has resulted in a potential increase in the profitability of miners. It is worth noting that after the Ethereum Merge upgrade, ETC has emerged in its favour, considering that ETH miners need minimal upgrades to start mining on the network.
In addition, the price of ETC may benefit from a short squeeze strategy by its community. For example, data from cryptocurrency analytics platform Santiment indicated that ETC saw an increase in trading volume while being heavily sold off by traders. Therefore, without any massive catalyst, it will be important to focus on the price of ETC, especially if traders start taking profits.
At the time of writing, ETC is trading at $20.02 with a weekly gain of more than 27%.
In addition, the technical analysis for ETC presents a mixed sentiment with the summary agreeing for “Neutral” at 9. The moving averages are for “Buy” at 9.
In 2022, Cardano (ADA) has reached several milestones, with the network recording sustained development activity that is a major catalyst for a potential price hike. Thus, the price of ADA in the first week of 2023 reached double digits. It should be noted that the value of Cardano has basically followed the general market sentiment in the price path.
Interestingly, the ADA has met despite the Cardano network’s involvement in the NFT controversy. In particular, founder Charles Hoskison has been in the center of attention after he initially refused to buy an NFT that he used for his Twitter profile picture.
While the catalyst for the rally cannot be immediately identified, ADA gains can be partially linked to the expansion of the Cardano DeFi ecosystem. Along these lines, ADA’s total guaranteed value has recently seen smaller gains.
At the same time, investor interest in ADA may be fueled by the ongoing electoral activity in the token. Meanwhile, Cardano continues to rank among the cryptocurrencies with the highest development activity on GitHub. Overall, ADA is at the center of attention next week as the focus will be on sustaining gains.
At the time of publication, ADA was trading at $0.29 with a daily gain of approximately 5%. On the weekly chart, Cardano is up 17%.
The recent gains pushed ADA technical analysis into bullish territory. Summary of daily counters by day TradingView It is for “buy” at 12, similar to the moving averages at 9.
Overall, the week of January 9th is huge for the cryptocurrency space considering the implications of the upcoming inflation data and how the Fed will react. Meanwhile, the focus will be on how the market reacts to any regulatory expectations given that the Fed recently warned banks against getting involved in cryptocurrencies.
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Cryptocurrencies to Watch for the Week of January 9, 2023 appeared first on Coinphony.