The past few weeks have not been very good for cryptocurrencies in terms of price actions. Since China declared another ban on crypto transactions and termed them illegal, Bitcoin dipped to below $42K, and it has been struggling to find its footing back to the highs of $45K. On the other hand, Ethereum has failed to go past its major support of $3000.
However, despite this price action, there are still some top cryptocurrencies that investors should watch out for this week.
Bitcoin is always a cryptocurrency that traders should watch out for. The coin leads the crypto charts, and its price action will always tell you how the rest of the market is performing. Currently, Bitcoin is at a dip, which presents a very good buying opportunity.
Bitcoin is among the cryptocurrencies that are popular with institutional investors. Following the recent market dip, investors have accumulated more BTC coins, contributing to some slight gains in prices. Bitcoin had recently dipped to around $40K, but dip buyers prevented further crashes.
Last week, the third-largest Bitcoin whale address accumulated an additional $13 million worth of Bitcoin when prices were at $40K. This whale address currently has over 111,000 Bitcoins and is popular for dip-buying. MicroStrategy also recently purchased an additional; $250M worth of Bitcoin when prices were low.
This behaviour of major Bitcoin whale addresses is why the coin is one to watch out for this week. With more dip buyers, a recovery in the market could lead to major price gains.
To learn more visit our Investing in Bitcoin guide.
Cardano has been making headlines over the past two months since the network announced that it would launch smart contracts. Cardano implemented the Alonzo hard fork upgrade that gave the platform a smart contract capability and pushed the prices towards $3. However, the broader market volatility prevented the coin from maintaining this price, and it dipped to lower levels.
Cardano recently announced that it is partnering with COTI to launch the Djed stablecoin. The Djed stablecoin will facilitate the development of decentralized finance (DeFi) projects on the Cardano network.
One of the factors that influence the price actions of different cryptocurrencies is the partnerships and developments made by the underlying networks. Cardano is hence poised to increase this week because of the buzz caused by the news of this stablecoin.
Furthermore, Cardano has also been termed the “Ethereum Killer”, a notion that has become a possibility because of smart contract capability. If more DeFi projects are launched on Cardano, we expect to see the value of ADA taking a major upswing.
Nor forgetting, the founder of Cardano, Charles Hoskinson, had stated that the value of ADA could reach $150 by the end of the year. Hence, Cardano is not just a coin to watch out for this week but also in the coming months.
To learn more visit our Investing in Cardano guide.
The other coin to watch this week is Chainlink. Chainlink is an oracle protocol that has been adopted by major networks that support DeFi projects because of its price feeds. These price feeds give DeFi developers access to timely information related to the DeFi world, which boosts efficiency and speeds.
Recently, Michael van de Poppe stated that LINK was a “very undervalued” crypto. Poppe is a renowned crypto trader and strategist. On his Twitter feed, he stated that LINK was undervalued, a sentiment met with divided opinions.
However, the crypto market is influenced by two main factors, which are fear and greed. With Poppe’s influence as a renowned analyst, we could see traders rally up support for LINK and accumulate more, hoping that prices will rise.
Moreover, Chainlink has also entered into a partnership with Cardano. This is poised to positively affect LINK’s prices, making it one of the top 5 cryptocurrencies to watch this week. In addition, Chainlink’s partnership with the smart contract platform is bound to increase following the current DeFi boom.
To learn more visit our Investing in Chainlink guide.
XRP has become one of the most popular cryptocurrencies in the market because of its case with the US Securities and Exchange Commission (SEC). Details of this case have influenced XRP’s price action, given that the coin dips when Ripple loses a motion and shoots when Ripple wins a motion against the SEC.
However, this case is not the reason why you need to watch out for Ripple this week. RippleX, the company’s division behind the XRP Ledger, recently stated that it had set aside a fund that developers would use to bring non-fungible tokens (NFTs) to Ripple.
NFTs is a rare use case for Ripple, given that the company mainly deals in remittance. However, the company has set aside $2 million distributed to 25 developers who will bring NFT use cases to the blockchain.
NFTs have been a major boom in the crypto sector this year, and for Ripple to state that it was willing to diversify to this sector shows great promise for XRP’s prices. Blockchains that have given in to the NFT craze have seen skyrocketing values for their underlying tokens, and news of this NFT development is bound to affect XRP’s prices.
To learn more visit our Investing in Ripple guide.
The other coin that you need to watch out for is Solana. When Solana rallied in August, the uptrend was surprising because the coin ended up increasing its value five-fold. Many people were left out of this bull run, which has since slowed down since the network suffered a 17-hour outage.
However, the current consolidation does not mean that the Solana upward price trend is over. Solana is the fastest blockchain in the world, with a throughput of around 65,000 transactions per second. The DeFi and NFT boom is still at play, which means that we could see major gains being made by SOL following massive network adoption.
To learn more visit our Investing in Solana guide.
When determining which cryptocurrency to watch, you need to evaluate several factors such as developments in its blockchain, price movements across the broader market and the popular sentiment on different blockchain forums. However, these factors do not give a 100% conclusive analysis that prices are going to gain. The crypto market is highly volatile, and sometimes, unprecedented price dips can occur.