5 Altcoins That Could Flourish in February
Top 5 Altcoins to Watch in February 2023: The Cardano (ADA) overcollateralized stablecoin will launch this week. Filecoin (FIL) will undergo a network upgrade while the PRIMAL mainnet goes live. Finally, Flux (FLUX) will halve its block rewards while Internet Computer (ICP) will hold a meetup discussing the most interesting Decentralized Finance (DeFi) projects.
Cardano (ADA) Leads Altcoins to Watch
Market Cap: $13,467 billion
Cardano is a smart-contract platform that offers numerous features. It uses a proof-of-stake (PoS) consensus called Ouroboros. This week, the overcollateralized Djed stablecoin will finally launch. Djed version 1.1.1 will include compatibility with the Vasil hard fork. However, it will only be a beta version with a limited amount of liquidity. Version 1.3 will be the one that considerably increases liquidity and also supports staking.
The Cardano price has increased by 66% since the beginning of the year. It broke out from a long-term descending resistance line on Jan. 9. The price is now very close to the $0.42 resistance area. Whether it breaks out or gets rejected could determine the trend’s direction.
A breakout could accelerate the Cardano price upward movement toward $0.52m while a rejection could lead to a retest of the $0.33 support area.
Filecoin (FIL) Network Upgrade
Market Cap: $2,056 billion
Filecoin is a decentralized data storage network. It allows users to sell their storage in an open market. The native token FIL is used to store and distribute data. The Filecoin Virtual Machine (FVM) will launch in Feb. It will be introduced incrementally to reduce the risk of disruption. FVM will be compatible with the Ethereum Virtual Machine (EVM), hence supporting its smart contracts.
Like the Cardano price, the FIL price also broke out from a descending resistance line on Jan. 8. Afterward, it reclaimed the $5 resistance area and validated it as support on Jan. 25 (green icon). The trend remains bullish as long as the altcoin does not close below the $5 resistance. In that case, the next resistance would be at $6.50.
On the other hand, a close below $5 could lead to a drop to the ascending support line at $4.50.
Internet Computer (ICP) Announces DeFi Meetup
Market Cap: $1,727 billion
Internet Computer is a blockchain network that supports smart contract development. It attempts to reinvent the interactions between users and internet applications. On Feb. 6, Internet Computer organized a meetup with the most interesting DeFi projects developing in the blockchain.
The ICP price broke out from a descending resistance line on Dec. 28. So far, it has reached a high of $6.28. However, the price is still below the 0.5 Fib retracement resistance level at $6.58.
If it breaks out, the altcoin could increase to the next resistance at $7.15. On the other hand, a rejection could lead to a retest of the $5 support area.
Flux (FLUX) Halves Block Rewards
Market Cap: $279,296 million
Flux is a decentralized Web3 infrastructure that holds numerous decentralized applications (dApps). The native token is FLUX, used for purchasing resources and rewarding miners/node operators. FLUX block rewards will be halved from 75 to 37.5 FLUX per block reward on Feb. 4 at block height 1,310,700.
The FLUX price moved above the $0.92 resistance area and validated it as support on Jan. 30. If the increase continues, the next resistance would be at $1.43. On the other hand, a close below the $0.92 area could lead to a drop to $0.69.
PRIMAL Mainnet Goes Live
Market Cap: $5,259 million
PRIMAL combines two existing concepts: STEPN-style sports tokens, and Chiliz-style fan tokens. It aims to connect fans with celebrity athletes. The PRIMAL mainnet will go live on Feb. 2nd.
The PRIMAL price reached an all-time high of $0.014 on Jan. 20. Afterward, it returned and validated the $0.009 horizontal area as support five days later. This created a long lower wick (green icon).
If the upward movement continues, the next resistance would be at $0.015, created by the 1.61 external Fib retracement of the previous drop. On the other hand, a close below $0.009 could lead to a fall toward $0.007.
To conclude, these five altcoins have interesting developments lined up for the month of Feb., which could have a positive effect on their price.
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