As we enter the week of March 6, the cryptocurrency market has taken a hit and many cryptocurrencies have experienced corrections. The dip in momentum was triggered by macroeconomic factors and liquidity concerns at crypto-asset-friendly Silvergate Bank. Amid increasing volatility, it is difficult for investors to determine which cryptocurrencies to focus on. Analyst Paul L. has announced the coins to watch this week, considering the specific scales in cryptocurrencies. Here are the details…
The first cryptocurrency on the list: Synthetix (SNX)
Synthetix Network (SNX), a decentralized finance (DeFi) protocol, is witnessing increased investor interest from its ongoing network development activities. Synthetix, which enables the issuance of synthetic assets on the Ethereum (ETH) Blockchain, has deployed version 3 (V3) to the Ethereum mainnet after security audits. According to the developers, V3 will have a more efficient architecture that enables faster development of decentralized financial applications.
The upgrade will also provide a liquid market for any financial derivatives assets. As such, SNX is among the cryptocurrencies to watch, with special focus on whether it can hold its gains after emerging as the weekly top earner.
Currently, SNX is trading at $3.15 with daily gains of about 6 percent. On the weekly chart, the token is up 25 percent. Judging by the technical analysis, the one-day indicators on TradingView are mostly bullish. Summary and moving averages are in a ‘strong buy’ feeling at 16 and 14 respectively.
Coinbsae was splashed with the news: Where is Optimism (OP) headed?
Optimism (OP) has grown amid continued adoption. As we reported on Kriptokoin.com, the token rose after Coinbase announced that it was launching a layer-2 network for Ethereum using Optimism-based technology. The news resulted in Optimism recording multiple earnings periods for the OP token. As part of the partnership, Coinbase will join Optimism as a core developer, a factor that increases investor confidence in the layer-2 blockchain. Based on the recent bullish momentum, OP has made it to the list of cryptocurrencies to watch.
Alongside partnerships, on-chain data shows Optimism outperforms its closest competitors by significant metrics. Specifically, data published by crypto analytics platform Messari suggests that Arbitrum and Optimism retain between 35 percent and 45 percent of new users in the short term, but Optimism has a higher retention rate for its long-term user base.
As crypto market uncertainty continues, it is vital to monitor the OP’s performance, especially if investors are to profit from the token. The OP is up over 1% daily, trading at $2.46. Elsewhere the OP technical analysis presents mixed signals, with both the summary and oscillators suggesting neutrality at 2 and 10 respectively. The moving averages point to selling at 8.
What’s next for the GateToken (GT) of the cryptocurrency exchange Gate.io?
GateToken (GT) is the native token of crypto exchange Gate.io and has recently witnessed a price spike due to the possible expansion of the platform to new jurisdictions. Gate Group’s recent application for a Hong Kong trust fund or Corporate Service Provider (TCSP) license could be the reason behind the recent price hike as it will 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 controls over the crypto market. In this case, the outcome of the regulatory review from Hong Kong authorities will likely affect the value of GT in the coming days.
Despite experiencing a price rally recently, GT has made constant corrections on the daily chart and is currently trading at $4.97. Meanwhile, GT’s technical analysis is mostly bullish. A summary of one-day indicators on TradingView shows “buy” at 12, while “moving averages” suggest “strong buy” at 11.
Prospects for Maker (MKR)
Maker (MKR) ignored the overall market downturn, being among the top-earning assets on the weekly chart. The gains, the Maker Foundation’s governance token MKR, can be attributed in part to the Maker DAO’s introduction of lower borrowing fees on March 1. Following the development, MKR trading volume increased by at least 200 percent. These changes increased interest in Maker’s borrowing offers and had a positive impact on MKR. Currently, Maker is trading at $970 with daily gains of about 10 percent.
The technical analysis of the token also reflects the positive sentiment around MKR. A summary of the one-day indicators shows “strong buying” at 16. The moving averages are also at “strong buy” at 14.
Bitcoin (BTC) is the last coin on the list
The first cryptocurrency corrected sharply in response to news that Silvergate Bank might go bankrupt, citing liquidity issues. The situation sent waves of panic to the crypto market, with Bitcoin (BTC) losing nearly $1,200 in an hour. The move nullified the crypto asset’s 2023 momentum. While uncertainty remains, the correction also caused Bitcoin to fall from the $23,000 demand zone.
Despite the bearish trend, Bitcoin is displaying indications of its ability to address traditional financial sector shortcomings such as inflation. According to a report, Bitcoin’s 1.7 percent inflation rate is currently three times less than the US dollar. Bitcoin remains an asset to watch because BTC’s price action has always affected overall market sentiment. As the new week begins, investors will be watching how the Silvergate situation evolves and its effects on Bitcoin.
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