- Hong Kong SFC will allow retail investors to buy, sell and trade a specific set of cryptocurrencies.
- This development has sparked investors to focus on a specific set of Chinese-related altcoins.
- Some of these tokens include Conflux (CFX), NEO (NEO), VeChain (VET), Alchemy Pay (ACH) or Filecoin (FIL).
- Traders can focus on these altcoins to make the best out of the heightened volatility.
Hong Kong’s recent stride in regulating cryptocurrencies sets a precedent for other countries that are either ignoring the asset class altogether or delaying its regulation. The Securities and Futures Commission (SFC) concluded its consultation on regulating virtual asset trading platforms on May 23, opening the door for retail investors to trade crypto assets. Since this development, certain groups of altcoins have started seeing unusual spikes in volatility.
Also read: Hong Kong leaves the door open to Ethereum killers Cardano, Solana, AVAX, MATIC and LINK
Hong Kong embraces cryptocurrencies
SFC’s consultation ended with a decision to allow certain registered crypto platforms to service retail investors. Additionally, the focus will also be to protect these investors and provide regulatory clarity.
As a result of this bullish development, Chinese-related projects have seen a high influx of demand from retail traders.
Chinese cryptocurrency narrative in full swing
Here are the top five Chinese cryptocurrencies that are pumping hard.
- Conflux (CFX)
- NEO (NEO)
- VeChain (VET)
- Alchemy Pay (ACH)
- Filecoin (FIL)
The only commonality between these tokens is that they all are Chinese-related projects. Let’s take a look at the charts to understand what to expect in the near future.
CFX, NEO, VET, ACH, FIL price chart
Conflux (CFX) Price Prediction
There are two key levels on either side that Conflux (CFX) price needs to overcome to trigger a volatile move.
To the upside, there are the $0.335 and $0.358 resistance levels. Clearing these blockades will allow CFX to sweep the equal highs at $0.443.
CFX/USDT 12-hour chart
A breakdown of $0.286 and $0.271 support floors could potentially drag Conflux price down to the 200-day Exponential Moving Average (EMA) at $0.167.
NEO (NEO) Price Prediction
NEO (NEO) price seems to be facing a sell-off on the retest of the 50-day EMA at $10.78. A flip of the $11.38 hurdle into a stable support floor is key for NEO to ascend 16% and tag the $13.22 barrier.
NEO/USDT 12-hour chart
On the other hand, a breakdown of the $9.37 support level, roughly coinciding with the 200-day EMA, could trigger a 14% descent to $8.07.
VeChain (VET) Price Prediction
VeChain (VET) price is a bit different from the other Chinese altcoins as it has not pumped in reaction to Hong Kong’s new regulations. Moreover, it sits below a critical support level at $0.0194, leaving it open for a steep correction.
A decisive breakdown of this barrier could result in a 14% plummet, leading to a retest of the $0.0166 support floor.
VET/USDT 12-hour chart
On the contrary, if VeChain manages to flip the $0.0194 hurdle into a support floor, it might attempt a retest of the 200-day EMA at $0.0215.
Alchemy Pay (ACH) Price Prediction
Alchemy Pay (ACH) price also faces a huge hurdle to the upside, which is a confluence of $0.0315 resistance level and the meeting point of the 50-day and 100-day EMAs at roughly $0.0324.
A failure to overcome this confluence is likely to lead to a pullback that could convert into a steep correction, knocking ACH down to tag $0.0225, which closely coincides with the 200-day EMA.
ACH/USDT 12-hour chart
If Alchemy price can overcome the $0.0324 confluence, it could potentially trigger a 40% ascent to $0.449.
Filecoin (FIL) Price Prediction
Filecoin (FIL) price also remains subdued, like VET or ACH. FIL is stuck between the $4.14 and $5.00 levels. The upper limit of this range coincides with the 200-day EMA, making it a tough hurdle. FIL will likely head south, and a breakdown of the $4.14 support level could trigger a 16% downswing to $3.44.
FIL/USDT 12-hour chart
Even if Filecoin price manages to overcome the resistance confluence at $5.00, it will face the 50-day and 100-day EMAs at $5.20 and $5.71, respectively.
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