What are XRP and other cryptos used for in January? Crypto Market Review, December 29

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Arman Shirinyan

There’s a lot to be desired from the cryptocurrency market in the new year, but we’re unlikely to start 2023 on a high.

Besides the non-existent liquidity and volatility in the cryptocurrency market, some analysts are noticing a nasty rally trend in the US dollar index that could lead to another drop in the cryptocurrency market, which is already going through a late slump. difficult year.

What to expect from XRP and others?

The price performance of XRP in 2022 has been a series of ups and downs: at the beginning of the year we saw a 60% peak at $0.9, and at the end of the year the price of the cryptocurrency fell to $0.34. However, considering the market performance in the background, XRP did relatively well, losing “only” 56% of its value compared to January 1st.

Source: Trading View

Over the next year, we don’t expect explosive performance from usage-dependent assets like Ethereum, Solana, or Matic. The cryptocurrency industry will likely remain passive as the majority of stream providers are not yet ready to return. This means that XRP and its counterparts will have to go through a dead end for a few more months.

Cardano reaches new lows

If you’re not used to Cardano’s ongoing battle for good market placement, then you haven’t been following the cryptocurrency market for long. Throughout this year, Cardano has found no way to backtrack and rally higher due to poor market performance, and the network in particular.

Despite the strong development activity, the use of Cardano as a network for NFTs and DeFi is still too low to create favorable conditions for the growth of the ADA market. After hitting an almost six-month low on the daily chart, ADA might show us a short-term bounce, but that will likely only happen in the new year.

DXY Reversal Potential

The macro conditions of the US economy for the cryptocurrency market remain tight: the inflation target has not yet been met by the Fed and the regulator has made it clear that the market’s performance is not its main priority. This means that rate hikes will continue into 2023, along with pressure on risky assets, including cryptocurrencies.

According to the daily index chart, DXY is showing reversal patterns. The value of the index recovers, the volume falls, as does the volatility, which is the perfect trifecta for a trend reversal, from a technical point of view.

However, we shouldn’t jump to conclusions as at least two of these factors could be the result of the holiday season in US markets, and we could see a rapid resumption of the aforementioned measures after January 3rd.

Unfortunately, there is a possibility of a negative scenario: in the event of a reversal of DXY, we would see an increase in pressure on the cryptocurrency market, which could lead to a new plunge towards new lows. .

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