As the Federal Reserve’s decision to hike interest rates looms, investors are keeping a close eye on the cryptocurrency market. With the potential impact of the hike on traditional financial assets like stocks and bonds, many are turning to cryptocurrencies as a safe haven. Here are the top five cryptocurrencies to watch before the Fed announces its interest hike decision: Bitcoin, Ethereum, Cardano, Binance Coin, and Solana. These coins have exhibited strong price movements in recent weeks and could continue to do so as the markets react to the news. Stay ahead of the game and keep an eye on these cryptos.
Crypto investors need to keep a keen eye on the macroeconomic situation, as it is closely tied to the financial landscape of the crypto market. Recently, the US Federal Reserve had an interest rate hike announcement and a FOMC meeting minutes release that would impact both equities and cryptocurrencies. These events had a negative impact on the market’s prices in 2022, but recovery started in the beginning of 2023.
As of now, some cryptos are investor favorites, here are the top 5:
1. FLOW – As the market rallied, FLOW rose significantly in price due to its high correlation with Bitcoin. According to CoinGecko, FLOW increased by nearly 15% weekly. The token’s support at $0.937 can hold any advances by the bears in case they make a move. Current resistance lies at $1.191, which contains FLOW’s November 2022 price levels. If this resistance flips to support, FLOW will have enough headroom to retest $1.939 in the long term.
2. FIL – Filecoin has been going up after the launch of its Filecoin Virtual Machine. The deployment of the virtual machine allows developers to deploy smart contracts and also opens the Filecoin community to a whole new experience. FIL’s resistance at $6.4 is currently holding the token on the edge of a downward spiral. If the bulls fail to break through this resistance, the token might fall to its crucial support at $4.881. However, defending the current support at $5.8 will be an essential step in breaking through the $6.4 resistance.
3. XDC – The XDC Network is a fork of Ethereum that uses a delegated proof-of-stake (dPoS) mechanism, which makes the network faster and more efficient than Ethereum with the network processing 2,000 transactions per second according to their website. The native token of the network, XDC, has been presenting a nearly 27% increase in the last week. The token is on the path of flipping the $0.038 resistance to support, an event that can happen in the next couple of days.
4. ZIL – Zilliqa’s decentralized ecosystem has been growing in popularity for DeFi users. The ecosystem’s official Twitter account recently disclosed that EVM compatibility will be coming on the Ziliqa mainnet, which would enable developers to deploy Solidity dApps on-chain. The token is currently trading on a red candle with a narrowing trading range above its support at $0.2723. Bears are trying to claw back the gains made by the bulls in this range, so keeping the price above this support ensures a higher upside. Investors and traders can comfortably target $0.3062 for gains in the short to medium-term.
5. BCH – BCH is a Bitcoin fork with several changes that make it a unique alternative to Bitcoin. With faster transaction time and fees, the coin is a valuable addition to an investor’s portfolio. The coin is currently up 3% in the weekly timeframe. Although a slow mover, BCH bulls can comfortably target $153.11 for a bigger upside. Holding on to the support at $119.46 would give BCH a strong launch pad for higher lows and higher highs.
Overall, 2022 was a challenging year for the crypto market, but as always, it recovered. Keeping an eye on the top cryptos and staying informed of market trends can help investors make better decisions.