The first week of 2023 was not very good for Bitcoin (BTC) as for most of the period BTC price traded sideways in the narrow range from $16,500 to $17,000. With very low trading volume, neither the bulls nor the bears could determine the direction The largest cryptocurrency in the market.
On the other hand, among the top 100 cryptocurrencies by market capitalization, 5 cryptocurrencies in particular shrugged off the dodgy BTC and It rose to 60%, proving that even in a massive bear market, there are huge opportunities in digital currencies.
Topping the list is Lido DAO (LDO) which has seen its value rise by more than 60% in the past seven days mainly driven by the increase in the value of Staking. Data from Glassnode suggested that Lido DAO It overtook MakerDAO as the largest DeFi platform in the cryptocurrency ecosystem (in terms of total amount blocked, TVL).
“There are many reasons for LDO’s rise, but they can all be summed up in the fact that more investors are using the Lido DAO as a staking platform for Ethereum. Since the latter switched to a PoS consensus mechanism in September (and several months earlier on experimental blockchains), Lido has enjoyed increased use. , with governance token LDO benefiting in parallel,” said analyst Simon Chandler.
5 cryptocurrencies that ignore bitcoin’s weakness
In second place among the cryptocurrencies that rose the most in the past seven days is Solana (SOL) which rose from the ashes of the FTX bankruptcy. The cryptocurrency asset has benefited from a string of positive news that includes a ‘blessing’ from Ethereum (ETH) creator Vitalik Buterin.
Buterin stated that Solana is a serious and essential project in the development of Ethereum. In addition, the memecoin Bonk (BONK) became the first dog-themed memecoin released on the Solana blockchain. 50% of the tokens were distributed via airdroop to the Solana community.
“Solana’s short-term price forecast depends on whether or not the price breaks the $14.80 resistance area. A breakout could accelerate the upward movement towards $20, while a breakout could test a new higher resistance line,” Valdin Taheri said. .
In the list of popular cryptocurrencies is Ethereum Classic (ETC) which has gained new ‘life’ by executing The Merge on Ethereum. As the hard fork activated the PoS mechanism on the ETH blockchain, ETC received a huge influx of miners migrating to the network. In the past seven days, the price of ETC has increased by more than 30%.
“It is not clear why the price of Ethereum Classic has turned into a parabolic,” said Crispus Nyaga. “One possible reason is that the coin jumped as investors anticipate a regulatory crackdown on Ethereum later this year, as the PoS mechanism is more vulnerable to regulatory intervention.”
Completing the list, with increases above 24% are Nearby Protocol (NEAR) and BitDAO (BIT). Both protocols have released updates recently and this may have helped keep investor sentiment in the positive camp.
In the case of Near, Luciano Rocha, of CriptoFácil, notes that if the price of the cryptocurrency remains above the broken trend line, buyers could push prices up another 18%, to the $1.83 level. However, the ideal target for this technical setup would be the swing high of this pattern, which is $6.12 NEAR price.
For BitDao, John Isige notes that the Relative Strength Index (RSI) is indicating an uptrend as it approaches the overbought area above 80.00.
“However, traders should be careful as the price may need to pull back to gain more liquidity before continuing its upward trend. It may be worth looking for a possible negative divergence on the RSI as a signal of a possible pullback,” he said.
Disclaimer: This is not an investment recommendation and the opinions and information contained in this text do not necessarily reflect the positions of Cointelegraph Brasil. Every investment must be accompanied by research and the investor must be informed before making a decision.