The strong upward trend of Bitcoin (BTC) and the immense popularity of the decentralized financial space have attracted several new investors for cryptocurrencies. A report by Crypto.com shows a massive surge in crypto users as the number rose from 66 million in May 2020 to 106 million in January this year.
Day view of crypto market data. Source: Coin360
Contrary to popular belief that new crypto users are mostly speculating on price, data from Unchained Capital shows that investors who have bought in the past three to five years are still holding and not tempted to make a profit.
In contrast to the 2017 bull market, where many low cap altcoins rebounded, the current bull trend has rewarded projects with strong fundamentals. Let’s look at three such tokens and also analyze their diagrams.
HOT / USD
Holochain (HOT) aims to provide the solution to the scalability problems that can be a limiting factor in the crypto sector. Holochain aims to give people control of data and privacy, and eliminate large corporations and middlemen.
To achieve this, Holo, a distributed peer-to-peer hosting platform, acts as a link between the web and the Holochain apps. Holochain wants to make this technology available to users who can access the apps through a web browser. If this is to be done, the technology must have tremendous scalability, high speeds, and also be financially viable. The Holochain team believes they are on track to achieve this goal.
As part of the process, Holochain launched an app called Elemental Chat that runs on HoloPorts. The team also plans to allow web users to log into Elemental Chat through HoloPort. This will put the scalability requirements of the protocol to the test and further optimize the project.
The team has also outlined progress on the upcoming milestones of the Holo product suite, which will be released gradually in the future. If the team keeps its promises, the minutes can catch investors’ attention.
HOT rose from $ 0.0007817 on Feb. 8 to an intraday high of $ 0.00424 on Feb. 21, rallying 442% in two weeks. This uptrend had pushed the relative strength index (RSI) above 92 on February 21st, indicating that the market was extremely overbought in the short term.
HOT / USDT daily chart. Source: TradingView
This resulted in a profit posting on February 22nd and 23rd, which brought the price down to the Fibonacci retracement level of 61.8% at $ 0.0021028. The positive sign, however, is that the long tail on the candlesticks showed strong buy at lower levels on both days.
However, traders stuck at higher levels ditch their positions on rallies, as evidenced by the long wick on the candlestick dated Feb.24.
After the big intraday area of the past few days, the HOT / USD pair formed an inside-day candlestick pattern today, indicating a balance between supply and demand. The pair can now consolidate for a few days.
If the bulls can push the price above $ 0.00363, a retest of $ 0.00424 is possible. A breakout of this level could begin the next segment of the uptrend which could hit $ 0.0055629.
Conversely, if the bears pull the price below $ 0.0028, the pair may drop to the 20-day exponential moving average ($ 0.0020).
ORN / USD
As the decentralized financial area is growing, many new projects are regularly announced. It becomes difficult for investors to keep track of everyone. Hence, a liquidity aggregator can be sought that connects to multiple decentralized and centralized exchanges to swap pools and provide access from a single platform. This is the goal of the Orion Protocol (ORN).
The protocol provides for a variety of sources of income to be offered to its investors. The Orion Liquidity Boost plugin offers its partners more liquidity and has already integrated Polka Starter and many other blockchain projects.
Orion’s Launchpad Liquidity has partnered with DAO Marker and DuckDAO to enable projects to launch incubated projects on the Launchpad’s own platform
Orion recently launched the stake calculator that allows ORN token holders to calculate stake rewards and achieve APYs of up to 38%.
After launching the first phase of the Orion Terminal’s main network on December 15, the team plans to add various features such as derivatives, leveraged ETFs, contract trading, NFTs, lending, margin trading, and staking digital assets by 2021.
As more products are launched, revenue is likely to increase, which can benefit ORN token holders.
ORN was in a strong bull run this year. It rose from $ 4.3014 on February 8 to an intraday high of $ 15.20 today, rallying 253% in just over two weeks. As a result, the RSI has risen above 91, indicating the possibility of a short-term decline or range-tied trade.
ORN / USDT daily chart. Source: TradingView
The bears attempted to stop the rally on February 22nd and 23rd, but each day’s long tail and positive closings show that the bulls bought the dips and resumed the rally.
Today, however, it looks like traders have taken a profit and a retest of the 38.2% Fibonacci retracement level at $ 11.4379 is possible.
If the ORN / USD pair rises from this support level, it indicates strong demand at lower levels. This could re-test $ 15.20 and a breakout of this resistance could push the pair to $ 20.
On the other hand, a break below $ 10.2759 could bring the price down to the 20-day EMA ($ 8.21). Such a deep fall could delay the next leg of the uptrend.
DODO / USD
The DeFi space has drawn investor attention in recent months. However, its growing popularity has caused the Ethereum network’s gas fees to rise to unsustainable levels. Hence, traders are looking for options that are on competing networks and charge fewer fees. Binance Smart Chain has been one of the main beneficiaries of this trend.
DODO is a decentralized exchange that uses the PMM (Proactive Market Maker) algorithm, which the team says is better than automated market makers. DODO offers various functions such as trading, aggregation, initial DEX offers and mining.
DODO introduced crowd pooling in January. This feature is designed to give investors equal opportunities by addressing the biggest issues on new projects. If successful, crowd pooling will help avoid front running, insufficient liquidity and the high costs associated with generating liquidity. The first phase of the DODO V2 beta crowdfunding pool called “ShuttleOne” was a great success as it was oversubscribed 173 times.
The DODO token was listed on February 19 after the start of the public beta version of DODO V2 on the Ethereum Mainnet and the Binance Smart Chain on February 22 at Binance. Several incentive programs are also available at BSC.
The DODO price rose from an intraday low of $ 2.788 to an intraday high of $ 10 on February 19th. The token saw strong gains, but the price has been in a correction phase since then.
DODO / USD 4 hour chart. Source: TradingView
The bulls attempted to rebound from $ 3.50 on Feb. 23, but the bears continue to sell on small rallies, indicating negative sentiment. One small upside, however, is that the bulls have been defending the $ 4.50 level for some time.
If the price deviates from current levels and falls above $ 5.660, the DODO / USD pair can rise to $ 7.50. This level will likely act as stiff resistance, but if crossed the pair could rise to $ 8.75 and then retest $ 10. The next section of the uptrend can continue above this level.
Conversely, a drop to $ 3.50 is possible if the bears cut the price below $ 4.50. Sell could intensify if the $ 3.50-2.788 support breaks.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.
