- Ethereum Layer 2 tokens may surge in value in 2024.
- Arbitrum (ARB) price fluctuates, potential breakout indicated.
- Polygon (MATIC) sees 109% growth, may signal time to sell.
The need for scaling solutions within the cryptocurrency ecosystem, particularly for the Ethereum
For those who may not know, the primary objective of scalability is to enhance the number of transactions processed and their velocity while maintaining security and decentralization. Notably, nearly every scaling solution comes with associated tokens, and in 2024, it is possible that some of these tokens could undergo a significant surge.
In the following text, Coin Edition will concentrate on a selection of the top ten Layer 2 tokens predicted to have significant potential in 2024. Additionally, the article will explain the importance of the underlying principles of these projects and how they could be pivotal in determining the success of their respective tokens.
Arbitrum (ARB)
Arbitrum
From December 2 to December 12, the trading price of ARB fluctuated within the range of $1.06 to $1.21. Nevertheless, the 4-hour ARB/USD trading chart indicated that this situation might no longer be relevant. Coin Edition had earlier indicated that ARB was exhibiting indications of an impending breakout.
On December 23, ARB’s price exited its narrow trading band when it escalated to $1.45. Nonetheless, there has been a recent decline in its value. During this downturn, the token’s price fell to $1.29.
Examining the Relative Strength Index (RSI) revealed that the value of the indicator had fallen to 47.28. In the event of increased profit-taking, there is a possibility that the price could fall to around $1.10. In such a scenario, the RSI value might fall beneath 30.00, which could signify a favorable opportunity to enter before the token’s price potentially reaches $2.
Polygon (MATIC)
Polygon
An MFI value above 80 suggests that a cryptocurrency has been purchased excessively. Conversely, a drop in the MFI below 20 indicates that a cryptocurrency has been oversold. Currently, MATIC is priced at $1.06. The MFI value signals that it may be time to sell.
Consequently, there is a possibility that MATIC could fall under the $1 mark shortly. Moreover, the 0.5 Auto Fibonacci extension indicates that the price could potentially decline to $0.90.
The Fibonacci level of 4.236 also suggested that the subsequent target could be $1.40. Therefore, those seeking to take long positions in MATIC should consider entering at approximately $0.90. Hence, individuals aiming for long positions in MATIC should identify potential entry points near $0.90 before the start of the rally.
Immutable X (IMX)
Immutable X
An AO value beneath the zero line signifies a current downward trend. The Bollinger Bands (BB) have also shown that there is a decrease in the volatility associated with the cryptocurrency. Therefore, it is likely that the IMX price will experience fluctuations within a narrower range in the near future.
Simultaneously, the narrowing bands might serve as a precursor, indicating an impending breakout. In the future, IMX might tend towards a $3 valuation if a widespread altcoin season approaches.
Optimism (OP)
Optimism
However, the upward movement started as early as December 19, when the price was $2.13. Additionally, the price surpassed the $2.34 resistance level, which increased to over $3.
During this period, it is possible for OP to fall beneath the $3.29 level. However, significant support has been observed at the $3.14 mark. If OP sustains this support level, its price could potentially approach $4. The Exponential Moving Average (EMA) has likewise corroborated this conclusion.
As of the reporting time, the 20-period Exponential Moving Average (colored blue) had moved higher than the 50-period Exponential Moving Average (colored yellow), indicating a potential upward trend for the cryptocurrency. Should the rate of purchasing exceed the rate of selling, the token’s potential surge in price could be noteworthy.
Mantle (MNT)
Mantle (MNT) facilitates Ethereum’s scalability by reducing high gas costs into a single block. Per CoinMarketCap, the 30-day trading results of MNT were not as high as those of OP and ARB.
At the time of this report, the cryptocurrency’s price stood at $0.58. Examination of the 4-hour MNT/USD chart revealed that the token encountered resistance from sellers when it reached $0.62.
Nevertheless, MNT could be poised for another climb in the rankings, as the Relative Strength Index (RSI) suggested. As of December 26, the RSI stood at 31.18, implying that the token had been overbought.
As of the current writing, the RSI indicator has begun to trend upwards. This trend suggests a rise in purchase orders for MNT. If the demand to buy continues to grow, MNT might once again surpass the $0.62 mark. Such an event could potentially lead to the cryptocurrency reaching a new record high.
MetisDAO (METIS)
MetisDAO
Additionally, Coin Edition examined the Moving Average Convergence Divergence (MACD) indicator. At the time of this report, the MACD stood at 1.92. This positive MACD value suggests that METIS is exhibiting a bullish divergence.
The Aroon indicator is also taken into account. Currently, the Aroon Up (in orange) stands at 85.71%, and the Aroon Down (in blue) is significantly lower. The relative placement of the Aroon Up and Down suggests that the bullish trend is very strong. Therefore, the price of METIS can rise even more.
Loopring (LRC)
Loopring
Over a medium to extended period, it is possible that LRC could surpass a value of $3. This inference is drawn from the Exponential Moving Average (EMA) data. Specifically, the 50-day EMA of LRC, represented in blue, has moved above the 200-day EMA, depicted in yellow, suggesting the likelihood of an upward trend in the coming months.
SKALE (SKL)
The SKALE Network
As 2024 approaches, it is possible that the price of SKL may experience an additional increase. Currently, the price of SKL is $0.064. According to the 4-hour chart, the Awesome Oscillator (AO) has declined to 0.073, suggesting a growing momentum towards a downward trend.
Nonetheless, the On Balance Volume (OBV) indicated a rise in purchasing momentum. Consequently, SKL continues to be a digital currency with promising prospects for the future. Investors ought to pay attention to the price action of ETH as well. Should ETH experience an uptick, it is likely that SKL could mirror that upward trajectory.
ethDYDX (ETHDYDX)
As of the time of reporting, ethDYDX was in the process of transitioning to the dYdX blockchain. This transition aims to facilitate the scaling of the Ethereum project and provide smooth interoperability within the blockchain. The token’s value has risen by 73.75% over the past three months.
The possibility of ETHDYDX experiencing a significant surge could rely heavily on the number of connectors linking the dYdX blockchain to Ethereum. Should there be an increase in the volume of tokens transferred across these networks by traders, it could lead to a heightened interest in ETHDYDX, potentially resulting in a favorable impact on its valuation.
Neo (NEO)
Neo
At the time of reporting, NEO was trading at $13.98, nearly twice its value from 30 days earlier. Looking at the 4-hour NEO/USD chart, it appears that NEO could be gearing up for a further increase as 2024 nears.
The reason for this was the Relative Strength Index (RSI). At the time of writing, the RSI was at 51.35. Moving past the 50.00 midpoint indicates increasing bullish momentum. Should this momentum continue, NEO reaching $15 could soon occur.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
