The crypto market has entered 2023 under the influence of the prolonged bearish conditions that have characterized the industry last year. However, despite the depressing conditions, a few altcoins stand out that show the potential to record gains contrary to the overall market movement. In particular, some altcoins are posting strong performances for reasons such as their rallying potential and promising use cases. Crypto analyst Justinas Baltrusaitis examines 4 altcoin projects to watch for next week.
The top altcoin project BitDAO (BIT)
BitDAO is a decentralized autonomous organization that has been in the limelight in recent weeks. The network caught the attention of the crypto industry after greenlighting a $100 million buyback for its token. It is worth noting that BitDAO aims to support various projects in the areas of decentralized finance (DeFi), DAOs, Non Fungible Tokens (NFT), and gaming through research and liquidity bootstrapping and financing.
As part of the buyback plan, the BitDAO team will purchase $2 million worth of BIT in USDT for 50 consecutive days from January 1, 2023. The plan received mixed reactions from community members. However, the development has had a positive impact on the token. Going forward, it will be interesting how the buyback plan affects ICT. At press time, BIT was trading at $0.35, up over 2% daily over the past 24 hours. On the weekly chart, BIT has rallied over 20%.
BitDAO seven-day price chartElsewhere, BIT technical analysis has been on the rise. Also, a summary of daily indicators on TradingView aligns with the ‘buy’ sentiment at 11. The moving averages are also at 9 for ‘buy’ and the oscillators are at ‘neutral’ at 8.
BitDAO technical analysis / Source: TradingViewPancakeSwap (CAKE) comes in second place
PancakeSwap managed to perform well despite the overall bearish market conditions. This is why it has caught the attention of altcoin investors in recent weeks. While many cryptocurrencies are struggling, CAKE has managed to close the previous weeks in the green zone. However, the altcoin failed to sustain the gains. In particular, PancakeSwap (CAKE) has recorded increased network development activity. For example, the platform announced V2, which comes with liquidity pools that can be used without permission and are controlled only by algorithms.
Indeed, CAKE remains a focus, given that the recent correction may offer investors an opportunity to buy bearish. In this case, if the token maintains a high buying pressure, it could act as a catalyst for another rally. At press time, CAKE was trading at $3.16, down less than 1% in the last 24 hours. On the weekly chart, the token has corrected by almost 6%.
PancakeSwap seven-day price chartAfter the last correction, CAKE technical analysis shows a bearish trend. Also, the summary indicates ‘sell’ at 14 and the moving averages ‘strong sell’ at 13.
PancakeSwap technical analysis / Source: TradingViewThird altcoin project Toncoin (TON)
Toncoin is the native cryptocurrency of The Open Network Blockchain. TON exhibited a long bullish moment even as key digital assets struggled to form a tough price action. The token’s rally can be attributed to several factors, with it at the top of the ascending network development and adoption rankings. For example, the gate.io exchange announced that it supports the TON/USDT pair for futures. After that, TON received increased attention. The token has also received support from the SafePal crypto wallet.
Additionally, Telegram’s decision to allow users to purchase Blockchain-based identities using Toncoin also contributed to the rally. This new feature will allow users to bypass the need for a SIM card. Following the FTX cryptocurrency exchange crisis, Telegram announced plans to launch its own trading platform with the possibility of TON being used as a service token. Currently, TON is trading at $2.28, up over 5% in 24 hours. On the weekly chart, the altcoin is down almost 8%.
Toncoin seven-day price chartElsewhere, unbiased sentiment dominates TON technical analysis. Summary of one-day indicators on TradingView stands at a ‘neutral’ sentiment at 10. The moving averages are also ‘neutral’ at 1. Oscillator indicators are pointing ‘sell’ at 2.
Toncoin technical analysis / Source: TradingViewHis latest project is Ripple (XRP)
XRP failed to break past the critical $0.40 support level as it failed to build on recent gains. Notably, XRP has displayed bullish sentiments after small gains in the ongoing Ripple and Securities Exchange Commission (SEC) lawsuit. Meanwhile, the lawsuit did not provide any bullish triggers. Moreover, cryptocoin.com As you follow, both parties have made their final applications. While the crypto community awaits the decision, the case continues to witness new developments from the parties involved.
Currently, the SEC has filed to seal several documents. Meanwhile, the presiding judge allowed crypto investment firm Paradigm to join the lawsuit. Currently, XRP is trading at $0.34, with a correction of around 1.4% in one day. The altcoin is down over 2.6% on the weekly chart.
XRP seven-day price chartBased on the token’s recent price action, crypto analyst Michaël van de Poppe warns that if XRP fails to break past the $0.37 resistance, the altcoin will potentially correct further.
XRP is displaying a sideways trading pattern. So, the technical analysis of the token continues its bearish trend, with a synopsis of ‘sell’ at 15. At the same time, the daily indicators for moving average sentiment are heading for a ‘strong sell’ at 13.
XRP technical analysis. Source: TradingViewFinally, it is worth noting that while the highlighted cryptocurrencies remain promising, recovery prospects still face the impact of various external factors. Accordingly, the market is struggling with macroeconomic factors. At the same time, part of the market believes that the FTX collapse could extend into 2023.