Metis' strong ecosystem fund, upcoming mainnet launch, and staking campaign could drive price, with a break above $129 needed to confirm bullish trend.
The Dencun upgrade, likely the most popular event on Ethereum since the merge in September 2022 is set to hit the mainnet on 13 March, this year.
This upgrade is set to introduce Protodanksharding, allowing the blockchain to process transactions faster, require less gas fees and so much more.
Even better, the Ethereum L2 solutions are set to explode in efficiency and scalability and will turn the Ethereum ecosystem into the go-to blockchain for millions of Dapps.
According to veteran analyst, Miles Deutscher in a recent tweet, here are some of the best cryptocurrencies to keep an eye out for before the Dencun upgrade.
This one is the most obvious choice.
According to Deutscher, MATIC is in an "interesting position" at the moment, because the Polygon team is set to rebrand the cryptocurrency from $MATIC to $POL.
Deutscher says that MATIC has been lagging behind other L2s like Avalanche and Optimism (which is true) and that the cryptocurrency might turn out to be a "strong performer" in the coming weeks/months.
According to data from CoinMarketCap, MATIC has slid to the 14th largest cryptocurrency by market cap, and is currently beneath Avalanche, despite being the most popular L2.
According to the chart above, MATIC has been trying and failing to break above the $1 zone since breaking below in May 2023.
The cryptocurrency appears to have the breakout part covered but may struggle with sustaining these breaks.
Overall, Deutscher's outlook is valid, in that the coming weeks/months may see MATIC finally register this break, and retest the $1.5 zone from February 2023 or higher.
Up next, we have Arbitrum, which Deutscher says has "strong metrics".
The analyst argues that Arbitrum is the "go-to chain" for new dApp launches. Deutscher also points out that Arbitrun is currently the number 1 chain in terms of TVL, leading to solid price prospects for the cryptocurrency.
According to the charts, Arbitrum has a similar predicament to Polygon.
The cryptocurrency broke above the $1.7 resistance in January this year and has been consolidating above this price level ever since.
The bears continue to attempt to bring the cryptocurrency down from here, and the Bulls appear to be struggling with holding ARB above the $1.7 zone.
Overall, as long as ARB stays above this price level, we are bound to see the cryptocurrency continue further upwards to around $2 or above.
Optimism seems like another obvious choice when it comes to riding on Ethereum's wave.
Deutscher points out that Optimism is the second biggest L2 by TVL, and like Arbitrum, has shown resilience when it comes to transaction processing.
Moreover, the Optimism airdrops are set to bring some renewed interest in the cryptocurrency.
According to the charts, Optimism seems to be trading solidly above the $2.63 zone in the medium term.
In the near term, the 20-day EMA also seems valid and is keeping the price of the cryptocurrency afloat above $3.6.
Judging by this outlook, we can say that the bulls are stronger than the bears, and Deutscher may not be wrong about this incoming rally with Optimism.
The analyst says that COTI just announced a new privacy-focused V2, which introduces what is called 'Garbled Circuits'.
This new development, according to the analyst, is set to bring in more users to the COTI network, especially with the launch of the Dencun upgrade.
In the near term, we can see that the cryptocurrency is facing resistance somewhere around $0.11 as shown below:
The chart above also shows that the cryptocurrency has also cleared the $0.08 support, and could likely consolidate for a while between $0.08 and $0.11.
Overall, if we see a $0.11 breakout on the cryptocurrency, COTI could indeed rally further upwards between now and the coming weeks.
According to Deutscher, Metis has a ton of strong developments to push its price.
These include a 4.6M $METIS Ecosystem Fund worth $400 million, the upcoming decentralised sequencer alpha mainnet launch in March, as well as the "Liquid Staking Blitz" campaign.
According to the chart above, METIS is trading atop a strong support of around $70 and currently trades at around $86.25 at the time of writing.
The cryptocurrency is currently consolidating above this $70 price level and needs a break above $129 to confirm bullish dominance.
This may or may not happen with the Dencun upgrade. However, the Bears are unlikely to win if we don't see a break below $$70.
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