Hong Kong’s recent moves to regulate cryptocurrencies set a precedent for other countries that have completely ignored the asset class or delayed regulation. Hong Kong’s Securities and Futures Commission (SFC) completed its consultation on the regulation of virtual asset trading platforms on May 23, opening the door for retail investors to trade cryptocurrencies electronically. Since this evolution, certain groups of altcoins have begun to experience unusual volatility spikes.
Hong Kong accepts cryptocurrencies
The SEC consultation culminated in a decision to allow some registered crypto platforms to serve retail investors. In addition, the focus will be on protecting these investors and providing regulatory transparency.
Due to this optimistic development, China-related items have received a lot of demand from retail traders. So the China crypto story is in full swing.
Here are the top 5 Chinese cryptocurrencies that are making a big push.
1. Confluence (CFX)
2. Near-Earth Objects (NEOs)
3. VeChain (VET)
4. Alchemy Payments (ACH)
5. Filecoin (FIL)
The only thing these tokens have in common is that they are all China-related projects. Let’s take a look at the chart to predict what will happen in the near future.
CFX, NEO, VET, ACH, FIL Price Chart | Source: TradingView
CFX Price Prediction
CFX price needs to cross two major levels to trigger volatility.
On the upside, resistance lies at $0.335 and $0.358. Removing these hurdles would take CFX above comparable highs of $0.443.
12-hour CFX/USDT chart | Source: TradingView
A break below the support floors at $0.286 and $0.271 will drag the price down to the 200-day exponential moving average (EMA) at $0.167.
NEO Price Prediction
NEO appears to be facing a sell-off as it retests the 50-day SMA at $10.78. A breakout of the $11.38 mark to a stable support bottom was key to the 16% price rally to $13.22.
NEO/USDT 12-hour chart | Source: TradingView
On the downside, a break below support at $9.37, which roughly coincides with the 200-day EMA, could trigger a 14% drop to $8.07.
Vocational Education Price Forecast
The VET price is a little different from other Chinese altcoins as it will not skyrocket based on new Hong Kong regulatory news. Also, it is below the critical support at $0.0194, so a strong correction is likely.
A decisive break above this barrier could lead to a sharp decline of 14% and a retest of the $0.0166 support level.
VET/USDT 12-hour chart | Source: TradingView
Conversely, if VeChain breaks above the $0.0194 support, a retest of the 200-day SMA at $0.0215 is possible.
ACH Price Prediction
ACH price is also facing a major hurdle to the upside. It is the confluence of the 0.0315 resistance level and the 50-day and 100-day moving averages around $0.0324.
Failure to break above this confluence could lead to a pullback that turns into a sharp correction, pushing ACH to $0.0225, which coincides with the 200-day moving average.
12-hour ACH/USDT chart | Source: TradingView
If the price can break the $0.0324 confluence, it could trigger a 40% rally to $0.449.
FIL Price Prediction
FIL price is also still low, just like VET or ACH. FIL is stuck between $4.14 and $5. The upper end of the range coincides with the 200-day SMA, making it a tough hurdle. FIL could fall, with a break below the $4.14 support level leading to a 16% drop to $3.44.
FIL/USDT 12-hour chart | Source: TradingView
Even if the price breaks the confluence resistance at $5, it will face the 50-day and 100-day moving averages at $5.2 and $5.71, respectively.
- In addition to Microsoft in the artificial intelligence competition, there should be a stronger opponent-Google
- OKX Exchange Lists BTC, ETH, and 14 Other Tokens for Hong Kong Retailer
- This Altcoin Could Soar When Hong Kong Opens Up to Crypto Since June
According to FXStreet