The crypto market shows slight volatility but is still above the $1.73 trillion valuation today. Remarkably, Bitcoin is trading above the $43,000 price level as the buyers continue to force a price increase for the asset.
This positive sentiment has influenced the altcoins, with some tokens posting impressive gains in the last 24 hours.
Although the U.S. Federal Reserve still insists on hawkish rates, the crypto market has rebounded from the slight decline suffered on Monday, February 5.
Meanwhile, DeFi has seen an inflow of investment in recent months after the launch of Bitcoin spot ETFs in America.
These factors have created favorable market conditions, leading to massive gains for some altcoins. More details on these top gainers and their price outlook are captured below.
Ethereum Name Service (ENS) – The Naming System Built on Ethereum
ENS is gaining massively today with a 24.1% surge to trade at $22.34. Also, it has gained 15.9% in the last seven days as buyers continue to support it.
Apart from the buyers, other factors push the price gains. For instance, ENS developers announced a partnership with popular website hosting provider GoDaddy.
This implies that millions of customers can use their DNS domains in the ENS ecosystem.
We're thrilled to announce our partnership with @GoDaddy 🎉
Millions of customers can now use their DNS domains in the ENS ecosystem!
Let's dive into what this means👇 pic.twitter.com/PyrZi4e5cV
— ens.eth (@ensdomains) February 5, 2024
Also, GoDaddy has integrated a new section in their domain management interfaced labeled Crypto Wallet. So, users can easily combine their Ethereum addresses with their DNS domain names.
This will enable seamless integration with applications that support Ethereum Name Service.
This integration is supported by the Ethereum Name Service Gasless DNSSEC launch, which makes the process entirely free. So, this announcement likely resulted in a surge in ENS value, which is evident on the daily price chart.
ENS Finds Support at $20.05, Will It Break Above the $22.50 Resistance Level?
ENS has formed a bullish pattern on the daily chart, with two consecutive green candles confirming increased buying pressure. Remarkably, it flipped the $20.05 resistance level to support and is currently testing the $22.50 resistance level.
A break above this level will send ENS to $23 if the buyers continue accumulating. Also, ENS trades above the Parabolic SAR indicator, confirming that the bulls control its price.
Additionally, the Relative Strength Index (RSI) indicator is close to the overbought zone, displaying a value of 64.46.
ENS will likely break above the $22.50 resistance level if the RSI enters the overbought zone. Therefore, ENS will likely continue to increase in the coming days if the buyers sustain their momentum.
Optimism (OP) – The Layer-2 Scaling Ecosystem On Ethereum
Optimism, the L2 blockchain based on Ethereum, is on this list of top crypto gainers thanks to its significant gains in the market today, February 6.
According to the crypto analytics platform Coinmarketcap, Optimism (OP) is gaining by 6.82%, with its price at $3.26 as of 6:01 am EST.
Furthermore, its 24-hour trading volume is $257.6 million, pumping by 91.61% today. Despite the overall market trend implying a bearish market, optimism is making notable gains.
Thus, investors and traders are keen to highlight the variables behind this growth and to know whether the coin’s up-move can take a significant turn in the long run.
✨As the Superchain takes shape, our first priority is emphasizing cooperation, not competition, as a core tenant. The Superchain is designed to encourage growth, ensuring a positive sum game for everyone.
"We're looking to give those fees back to the developer." Learn how… https://t.co/zfIJxNTRwg
— Optimism (@Optimism) February 5, 2024
According to Optimism developers, the Superchain is undergoing development and will focus on cooperation. Also, this chain will encourage growth and hopes to introduce a unique fee structure where developers benefit.
OP Price Pumps Amid Bearish Market – Will it Exceed the $3 Mark?
In the chart above, Optimism (OP) has formed three green candle sticks showing the increase in buying activities in the market over the last three days. The ascending pattern of the candlesticks further hints at the rise in value due to the high buying pressure in the coin’s market.
Also, the Relative Strength Index (RSI) is at 53.48 points upward. This movement confirms the bullish momentum upholding the coin’s price today. Buying pressure remains significantly high so the RSI could trail to the overbought zone (above 70).
However, if it moves in the opposite direction, it will plunge into the oversold region (below 30). One factor that could trigger a dip is the dynamic resistance provided by the 50-day SMA.
The position of this moving average shows a supply level that OP’s price could respect.
Thus, a price rally toward this level could trigger a pullback, driving the RSI to the oversold region. Despite this bearish signal, OP is still above its 200-day Simple Moving Average, which suggests that the overall market trend is bullish in the long term.
As a result, the coin could rally, breaking the dynamic resistance and targeting the horizontal resistance at the $3.6 mark. If that happens, the coin could commence a bullish trend in the short and long term, making a new series of higher highs and higher lows in the long run.
Nevertheless, consistently implement strategic trade setups and adequate risk management strategies before entering such volatile markets.
Immutable (IMX) – The NFT and Gaming Ecosystem
Immutable (IMX) is making significant gains in the crypto market today, and one reason for this surge is the upcoming launch of its zkEVM Mainnet, which is excellent news for web3 gamers.
Sphere by @BuildonBeam is among the first marketplaces to integrate with Immutable zkEVM, powered by @0xPolygon!
This integration means that every single game that goes live on Immutable zkEVM mainnet will be available on the Sphere marketplace.https://t.co/eCbXFcAwR7 pic.twitter.com/AUio3Ofm1E
— Immutable (@Immutable) February 5, 2024
Also, BuildonBeam has become one of the first marketplaces to integrate the Immutable zkEVM backed by Polygon. So, every game on the Immutable zkEVM Mainnet will be available on the sphere marketplace.
This integration has a positive effect on IMX’s price.
The price of Immutable has shot up by more than 20% in the past week since the zkEVM Mainnet’s announcement. This new protocol promises exciting benefits for gamers, such as better scalability, improved gameplay mechanics, and no gas fees.
With the launch of the zkEVM Mainnet, the value of Immutable has soared past $2, marking a significant increase after a struggle. Trading volume for Immutable has also seen a notable rise in market activity.
Experts predict this bullish momentum could push the token’s value above $3 shortly.
IMX Finds Dynamic Support Level – Can Buyers Be Active Here?
IMX has commended its impulsive move to the upside since early February. However, today, it is forming a black candle stick, indicating increased selling activities in the market.
The Relative Strength Index (RSI) is plunging from the neutral level at 58.91.
The RSI could reach the oversold region (below 30) if more SELL orders are enabled. However, if not, it could retrace to the overbought region (above 70).
While this may indicate a bearish signal, the coin’s price is still above its 50-day and 200-day Simple Moving Average (SMA), which hints at an overall bullish market trend.
Again, the 50-day SMA is a dynamic support for the coin’s price, indicating a level where buyers can take over if the IMX’s price dips to that level. In the chart above, the coin’s horizontal resistance level is at the $2.6 level.
Given this level’s high supply, IMX will likely pull back upon approaching the resistance.
However, the distance between the resistance and the current price shows there’s still potential for more gains in the coming days. Considering these indications and the potential for further gains in the long run, traders and investors looking for profit can keep an eye on IMX’s movement to set profitable trade orders.
As always, adopt adequate risk management tactics and work with smart trade setups to make the most out of this market.
Sponge V2 – (SPONGEV2) – The Utility-Based Fun-Themed Cryptocurrency
Sponge V2 is a community-based cryptocurrency that started as a memecoin but has become a utility-based token. Version 1 of the Sponge project officially ended on February 5, and all holders are now in the Sponge V2 community.
Remarkably, Sponge V2 introduces a weekly Play-to-Earn (P2E) game that gives users a fun-filled way of earning rewards. This game comes in free and premium modes, and users can earn SPONGEV2 tokens directly from gameplay.
Each SPONGEV2 token is currently worth $0,000709, already higher than the version 1 launch price of $0.000025. Also, over 5.63 billion tokens have been staked, preserving the long-term value of the ecosystem.
Sponge V2 is hosted on the Polygon network, which makes it well-positioned for success.
What are experts saying about Sponge V2?
Experts continue to give positive reviews about the Sponge V2 tokens. According to analyst and vlogger Jacob Crypto Bury, SPONGEV2 will hopefully rally soon.
$SPONGE is getting ready to hopefully catapult!!! Why this can potentially 50X? Well…#SPONGE currently has a $23m market capital $MYRO, $PORK, $BONK, etc all went from a $20-25m market capital up to $250m+ each once they get listed on more TIER 1 CEX's. 🚀🚀
Sponge…
— Jacob Crypto Bury (@BuryCrypto) February 5, 2024
Bury notes that SPONGE has a $23 million market cap and mentioned some projects that rose from a similar market cap after listing on top exchanges. So, SPONGEV2 provides a second chance for investors who missed out on the Sponge V1 rally after its listing.
Conclusion
Prices are relatively stable in the crypto market today as investors transition into an accumulation phase. The top gainers today all record impressive developments within their ecosystems.
These developments attract investors who accumulate the tokens and remain optimistic about increased value.
However, uncertainty is a constant factor in the crypto market due to price volatility. Therefore, investors must carefully manage risk exposure to avoid massive losses.
Overall, the positive sentiment in February could likely lead to a more improved price performance in the coming days.
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Nick Dunn
Crypto Journalist
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