The Hong Kong Securities and Futures Commission (SFC) recently completed its consultation on the regulation of virtual asset trading platforms, paving the way for retail investors to venture into cryptocurrency trading. This move is set to spur widespread crypto adoption, especially with the market’s volatility, as only specific cryptocurrencies and certain exchanges will be permitted to provide these services. As a result, demand has substantially increased from retail traders, especially for Chinese-related projects.
Institutional backing from Hong Kong towards cryptocurrency trading has led to a surge in interest in top Chinese cryptocurrencies such as Conflux (CFX), VeChain (VET), and Filecoin (FIL). Conflux, which peaked at $0.487 on March 19th before entering correction mode, now trades at $0.32 and could potentially grow by 52% if it breaks the resistance trendline of a falling channel pattern.
Meanwhile, VeChain’s price chart displays the formation of an inverted head and shoulder pattern which could signal a significant rally upon completion. At the time of writing, VET trades at $0.0203, with a potential to rise by 50% upon breaking the overhead neckline resistance. A bullish breakout here could indicate a trend reversal.
Filecoin presents a different story. The ongoing downtrend in Filecoin’s price has been driven by a long-standing resistance trendline, which last caused a reversal on February 19, driving the coin’s price down by 50.8%. Now at $4.6, FIL is expected to rise to rechallenge the overhead trendline. A bullish breakout beyond this point could signal a shift in market sentiment, potentially increasing Filecoin’s market value to $11.
It is essential for investors to remember that, while these developments appear promising, cryptocurrency markets can be unpredictable. Market sentiment can change rapidly, which can lead to unanticipated fluctuations in the value of specific coins. It is crucial to conduct thorough research and consider various factors before investing in cryptocurrencies to avoid potential financial loss.
Source: Coingape
