Cryptocurrencies to watch for the week of March 6, 2023
As we enter the week of March 6, the cryptocurrency market has taken a downturn, with many assets experiencing corrections. The drop in momentum has been triggered by macroeconomic factors and liquidity concerns at digital asset-friendly bank Silvergate.
Amid the increased volatility, it is challenging for investors to determine which cryptocurrencies to focus on. Therefore, Finbold looks at the most promising cryptocurrencies to watch out for as current market conditions prevail in the coming week.
Synthetix (SNX)
Synthetix Network (SNX), a decentralized finance (DeFi) protocol is witnessing increased investor interest from ongoing network development activities. Synthetix, which enables the issuance of synthetic assets on the Ethereum (ETH) blockchain, has recently deployed version 3 (v3) on the Ethereum mainnet following security audits. According to developers, V3 will have a more efficient architecture that enables faster and more complex development of decentralized financial applications.
The upgrade will also provide 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, allowing network actors to deliver collateral to specific asset pools and receive fees without exposure to all Spartan Council-backed assets.
Therefore, SNX is among the cryptocurrencies to watch, with particular focus on whether it can hold on to its gains after emerging as the highest weekly gainer.
At press time, SNX was trading at $3.15 with daily gains of around 6%. On the weekly chart, the token is up 25%.
During technical analysis, one-day gauges on TradingView is mainly bullish. The summary and moving averages are for a “strong buy” sentiment of 16 and 14 respectively.
Optimism (OP)
Optimism (OP) has registered growth amid sustained adoption. The token has rallied after crypto exchange Coinbase announced the launch of its layer-two network for Ethereum using Optimism-based technology. The news has resulted in Optimism recording several periods of gains for the OP token.
Under the partnership, Coinbase will join Optimism as a core developer, a factor that boosts investor confidence in the layer two blockchain. Based on the recent upward momentum, OP made Finbold’s list of cryptocurrencies to watch for the month of March.
Besides partnerships, chain data indicates that Optimism beats its closest competitors on key figures. Notably, data published by crypto analytics platform Massari suggests that Arbitrum and Optimism retained 35% to 45% of new users in the short term, but Optimism had a higher retention rate for its long-term user base.
With the uncertainty in the crypto market persisting, it is important to monitor OP’s performance, especially if investors want to withdraw profits from the token. OP has recorded daily gains of over 1% to trade at $2.46.
Elsewhere, OP technical analysis offers mixed signals, with both summaries and oscillators recommending neutrality at 2 and 10 respectively. Moving averages are for sale at 8.
GateToken (GT)
GateToken (GT) is the native token of crypto exchange Gate.io and has recently witnessed a price pump due to the platform’s possible expansion into new jurisdictions. Gate Group’s recent application for a Hong Kong Trust or Company Service Provider (TCSP) license may be the reason behind the recent price increase, as it would enable the exchange to expand its presence and services in the region.
This move is in line with the growing trend of crypto exchanges prioritizing compliance as regulators continue to tighten their global oversight of the crypto market. In this case, the outcome of the regulatory outcome from the Hong Kong authorities is likely to affect the value of GT in the coming days.
Despite a recent price rally, GT has recorded sustained corrections on the daily chart and is currently trading at $4.97.
Meanwhile, GT’s technical analysis is mainly bullish. A summary of the one-day meters on TradingView shows “buy” at 12, while “moving average” recommends “strong buy” at 11.
Maker (MKR)
Maker (MKR) has largely ignored the general market decline to rank among the highest earning assets on the weekly chart. MKR, the Maker Foundation’s governance token, can be attributed in part to Maker DAO’s recent deployment of lower loan fees on March 1st.
MKR trading volume rose by at least 200% following the development. These changes have increased interest in Maker’s loan offer, and positively affected MKR.
Currently Maker is trading at $970 with daily gains of almost 10%.
Token’s technical analysis also replicates the positive sentiment around MKR. A summary of the one-day targets indicates a “strong buy” at 16. Moving averages are also for “strong buy” at 14.
Bitcoin (BTC)
The virgin cryptocurrency saw a sharp correction in reaction to news that digital asset-friendly lender Silvergate Bank may go out of business, citing liquidity problems. The situation sent panic into the crypto market, with Bitcoin (BTC) shedding around $1,200 in an hour. The move nullified the digital asset’s momentum for 2023.
The fallout saw analysts label the Silvergate situation as Bitcoin’s short-term sentiment killer. As uncertainty prevailed, the correction also resulted in Bitcoin falling through the $23,000 demand zone.
Despite the bearish sentiment, Bitcoin is showing early indicators of its ability to address traditional financial sector shortcomings such as inflation. According to a Finbold report, Bitcoin’s inflation rate of 1.7% is now three times less than US dollars.
Bitcoin remains an asset to watch because BTC’s price movement has always influenced overall market sentiment. As the new week begins, investors will be watching how the Silvergate situation plays out and its implications for Bitcoin.
Furthermore, the price of Bitcoin remains subject to the battle between the bulls and the bears. The crypto is currently changing hands at $22,443. On the weekly chart, BTC is down almost 4%.
On the other hand, Bitcoin technical analysis still has traces of bullish sentiment. A summary of the one-day techniques on TradingView is for ‘buy’ at 11, same as oscillators at 5. Moving averages recommend ‘sell’ at 8.
All in all, the success of the cryptocurrencies depends on the team’s efforts and development, as well as external factors such as the crypto market and macroeconomics.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
