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Alternative coins (altcoins) have remained suppressed for several months, a situation complicated by the extended cryptocurrency bear market. Indeed, in the past, altcoins rallied thanks to interest from retail investors, but they have failed to pick up as the crypto market was hit with instances such as the FTX exchange collapse and soaring inflation.
However, cryptocurrency investors hope 2023 will come with positive tidings and put behind the 2022 sell-off. In this line, in a YouTube video on January 1, crypto trading expert Michaël van de Poppe identified specific altcoins to look out for in 2023. Below are the altcoins identified by the analyst:
Chainlink (LINK)
According to Poppe, Chainlink (LINK) is currently in an accumulation zone like the general market. He noted that the token is likely to bottom in the range of about $4 to $5 and will benefit from a possible relief rally once the Federal Reserve slows down on its monetary policy.
In the meantime, he noted that the token is exhibiting a historical cycle similar to the one recorded in 2019.
With the analyst projecting further correction for LINK, he suggested that the token could interest investors focusing on decentralized finance (DeFi). He said that 2023 will likely form the best moment to accumulate LINK, stating that the asset will likely take off in 2024 or 2025.
By press time, LINK was trading at $5.60, with a correction of about 0.4% in the last 24 hours. At the current price level, Poppe stated that LINK is facing resistance at around $7.80, and breaching the level could lead to a further continuation with a focus on $16.85.
On technical analysis, LINK’s summary of the one-day daily gauges from TradingView recommends ‘sell’ at 14 while moving averages are going for a ‘strong sell’ at 13. For oscillators, the gauges are ‘neutral’ at 8.
Polkadot (DOT)
Poppe pointed out that the interoperability blockchain token is being hammered by the crypto price movement, stating that it’s getting stretched irrationally. Besides the prevailing bear market, the analyst noted that DOT is being affected by the lawsuit against the Gemini crypto exchange, considering the relationship between the two entities.
While projecting a relief rally later in 2023, Poppe projected that DOT could rally between $16 to $24. By the time of publishing, DOT was trading at $4.35, recording daily gains of about 0.37% within the last 24 hours.
Elsewhere, DOT’s technical analysis summary is for the ‘sell’ sentiment at 13, while moving averages are for a ‘strong sell’ at 13.
Cosmos (ATOM)
Similarly, for Cosmos (ATOM), Poppe stated that the price movement could replicate the 2019 and 2020 trading patterns where the asset consolidated before rallying again. He suggested that at the current price, ATOM offers an opportunity for investors to accumulate while projecting that the asset is likely to gain to a region above $25 in the event of a relief rally.
However, he expressed scepticism if the current price movement could lead to a bottom. At the moment, ATOM is trading at $9.45 with minor gains of 0.65% in the last 24 hours.
As ATOM consolidates, the token’s summary of daily technical analysis on TradingView is for ‘sell’ at 10, similar to moving averages at 8. The token’s oscillators are recommending a ‘neutral’ sentiment at 8.
Binance Coin (BNB)
Additionally, Poppe stated that Binance Coin (BNB) should form part of any portfolio because it is provided by the largest crypto exchange Binance. In this line, the analyst believes that BNB can benefit if the general crypto market rallies again. However, he cautioned BNB prospects largely depend on how Bitcoin (BTC) performs.
At the same time, as reported by Finbold, crypto experts at TradingShot through TradingView projected that BNB could be among the best investments in 2023.
BNB is still consolidating, trading at $245 with a correction of about 0.5 % in the last 24 hours.
Furthermore, BNB technical analysis summary on a daily basis is going for the ‘sell’ sentiment at 15 while moving averages are for ‘strong sell’ at 14. On the other hand, the oscillator gauges are for neutrality at 9.
Skale (SKL)
Finally, the trading expert noted that interoperable, multichain network Skale (SKL) has the potential to rally, citing the platform’s strong foundation. He suggested that if SKL breaks the $0.025 resistance, it will take the previous highs and start rallying to the zone of $0.20. Currently, SKL is trading at $0.02.
Despite the analyst identifying SKL’s foundation as a critical trigger for the rally, the token’s technical analysis summary on TradingView aligns with ‘sell’ at 16. Moving averages are for a ‘strong sell’ at 14, while oscillators are for ‘buy’ at 4.
In conclusion, the highlighted altcoins movement will largely be determined by how the general crypto market reacts to prevailing factors like macroeconomic elements such as rising inflation. Furthermore, the market is still feeling the effects of the FTX crypto exchange implosion, and how the matter is concluded will be key.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.