Miles Deutscher, a well-known cryptocurrency analyst and trader, shared his weekly token watchlist on Twitter. This week, he explained the tokens he will follow closely and the reasons behind his choices.
Here is the analyst's list:
Bitcoin
Deutscher said BTC is at a key support level at $25,000, which is the start of the rally to $31.5,000 following BlackRock's announcement to enter the crypto space.
He added that he expects more fluctuations in the market with the Consumer Price Index (CPI) and Producer Price Index (PPI) data to be announced this week in the USA. Additionally, Mt. Mt., who has been waiting years to access his funds. Gox and Silk Road warn of potential sales by Bitcoin holders.
Solana (LEFT)
Deutscher said on Wednesday that FTX will likely receive approval to liquidate $3.4 billion worth of crypto assets, more than $1 billion of which is SOL.
However, he argued that this may not be as bearish as it seems, as most of the SOL tokens are locked up until 2028 and Galaxy Digital, the custodian of FTX's assets, is incentivized to sell them gradually and at the best possible price.
dYdX (DYDX)
Deutscher said DYDX, a decentralized exchange for margin trading and derivatives, will undergo a major event on December 1, when 25% of its tokens will become available for trading.
He noted that DYDX has a history of timing sharing bullish news ahead of major unlocks, such as launching its Layer 2 solution and governance token in September 2022.
He explained that he is bullish on the token's fundamentals and vision and is looking forward to the version 4 update. However, he added that selling pressure will be high and a strong announcement will be needed to offset this.
Polkadot (DOT)
Deutscher said there will be a “secret” DOT unlock at the end of October, where users who participated in the first parachain crowdloans in December 2021 will get their locked DOTs back.
He also noted that at that time DOT was trading at $25, but now it is only $4. He stated that since the attention is focused on unlocking SOL FTX, no one is really talking about this unlocking. He announced that the DOT expects it to lose power in the coming weeks.
Frax (FXS)
Deutscher argued that FXS, the governance token of Frax, a partially collateralized stablecoin protocol, is one of the few tokens with a strong short-to-medium-term trend. He said Frax is expected to undergo two major updates soon. He announced that FXS is at the top of his watch list.
*This is not investment advice.