January was very optimistic for the cryptocurrency industry as countless coins hit record highs throughout the process. Will February see similar bullish gains in cryptocurrency?
If so, which token could lead the trend and why? Read on below to find the answer.
1. Ethereum (ETH)
Current price: $1321
Market value: $151 billion
Market capitalization ranking: #2
Calculated by market value, Ethereum is the second largest cryptocurrency after Bitcoin (BTC). There are a large number of use cases as its blockchain can be used as a platform for developing smart contracts for many other cryptocurrencies.
An interesting development from Ethereum in February is that the CME Group released cash-settled Ethereum futures, which are expected to be launched on February 8, 2021.
Following the introduction of Bitcoin with cash-settled futures in 2017, ETH is now the second digital asset whose futures are processed by the CME Group. This can provide market participants with an easier method of managing risk when investing in Ethereum.
From a technical analysis standpoint, Ethereum appears to be the last stop on its bullish impulse, but it could climb as high as $1,780 before collapsing.
2. Elrond (EGLD)
- Current price: $59.94
Market value: $1 billion
Market capitalization ranking: #45
While EGLD is ranked by market capitalization, it’s still a relatively small coin, but its price and ranking have improved significantly over the past month.
Since the goal is to build a financial system that allows near-instant transactions without inflation, the company has ambitious plans for the future. EGLD plans to make the system globally accessible.
In order to achieve this goal, “Maiar” is to be published, a financial application that enables simple cryptocurrency and transfers worldwide. The app allows users to find a wallet in seconds. Unlike Venmo or Google Pay, Maiar does not collect any personal data. So far, 180,000 users have registered for this version.
The publication date of this wallet and payment application was January 31, 2021. From a technical analysis standpoint, despite the parabolic surge, EGLD appears to be still in a long-term uptrend and is expected to continue rising towards $84-85.
3. Stellar (XLM)
Current price: $0.341
Market value: $7.5 billion
Market capitalization ranking: #10
Stellar was founded in 2014 with the aim of providing financial services to underdeveloped areas of the world. The fixed transaction fee for transactions on its network is only 0.0001 XLM and is almost instantaneous.
Coins also enjoy institutional benefits, as evidenced by Grayscale Investments, which formed the Stellar Lumens Trust. In the third quarter of 2020, XLM is Grayscale’s seventh best asset.
Developments in February have been exciting since the recent announcement that Stellar would become the official USDC chain.This enables developers to have a strong stable coin when trading on the Stellar network. The global liquidity of USDC can also be optimally used in cross-border transactions. Additionally, USDC users reportedly benefit from near-free transactions and near-instant transaction speeds.
From a technical analysis perspective, XLM appears to be correcting its long-term upward move, but is expected to resume its uptrend after finding support between $0.19 and $0.22.
4. SXP (SWIPE)
Current price: $1.32
Market value: $99 million
Market capitalization ranking: #162
While SXP doesn’t rank high in terms of market capitalization, it belongs to the Decentralized Finance (DeFi) sector, known for making significant gains and seeing the biggest increase over other altcoins during the month.
The sale of percussion ignition is an interesting development in February. Swipe Ignition is a platform that allows new token projects to be introduced into the Swipe ecosystem to raise funds. In addition, users are enabled to use SXP for public sales.
Payments for purchases must be made using SXP and 50% of the funds raised are burned to be used as a deflationary tool. The services provided to newly listed companies include but are not limited to: partnerships, liquidity, and market listings.
After the first ignition sale is successful, the interest in tokens can be expanded the second time, which leads to price increases. The second sale will be more diversified, including airdrop and public sales.
In terms of technical analysis, SXP is expected to continue rising to the next resistance level of $2.30.
5. Verge (XVG)
Current price: $0.01
Market value: $269 million
Market capitalization ranking: #96
Similar to SXP, XVG is a coin with a lower market value and a price of just $0.01.
Even so, the XVG halving took place on January 26th, after which a significant price spike is expected, similar to what happened after the BTC halving on May 11, 2020.
Since the halving reduces the number of rewards for mining blocks by 50%, they are inherently bullish. For XVG, the block reward will be reduced from 200 to 100 after dismantling 5,200,000 blocks. The next halving is expected to happen in September.
From a technical analysis point of view, XVG is currently re-testing the breakthrough level and is expected to increase further thereafter.
The five coins featured in this article have both interesting developments in February and bullish charts based on technical analysis. Although there are many projects with high potential in the cryptocurrency space, these five coins were selected as the most promising coins in February for their fundamentals and technical aspects.