Crypto Market Review, January 2

[ad_1]

Arman Shirinyan

Markets are slowly recovering after the holiday season, certainly a good start to the year

Despite the depressing end to last year, much of the cryptocurrency market is moving into the green zone. A positive start to the year could be an excellent basis for an extension of the rally that we have been waiting for all year.

Ethereum in an uptrend

Despite the extended downtrend in 2022, Ethereum starts the year with a local uptrend, and the exponential moving average forms a certain pattern that will most likely become volatility fuel for the second largest cryptocurrency in the market.

Source: Trading View

At press time, Ethereum is trading at the 21-day moving average with numerous attempts to break it since December 20. However, the downward trend in the trading volume of the asset caused the rally to decelerate and return to the local market. trendline support.

Unfortunately, the downward trend in the volume indicator could portend an upcoming trend reversal and lead to further decline. The only scenario in which we would see a return to purchasing power in the market is a breakout of the 50-day moving average.

Solana’s Surprising Escape

Over the past few weeks, Solana has experienced one of the largest outflows from the asset, which was caused by the holiday season and lack of business activity.

Unfortunately, Solana still poses huge risks to institutional investors, which is why we are yet to see a recovery in trading volume and inflows. At the same time, the heavily oversold state of the asset led to the price surge we saw today. The local breakout could become the basis for SOL’s recovery in the coming months, especially if investors are able to bring some of their funds back into the market.

At press time, Solana remains one of the most actively used networks in the market, with the highest number of transactions processed compared to other chains. Nonetheless, the price performance of the asset is still suppressed, with the SOL down over 93% against the ATH.

The Dogecoin Development Fund

The lack of use cases has been a major problem for the famous coin over the years. Fortunately, the Dogecoin Foundation recently announced the creation of a new development fund by allocating 5 million DOGE to attract more developers and bring attention to the core of the network.

With the growing number of developers in the Dogecoin ecosystem, we could finally see the asset recover using use cases that would lead to more fees and network usage, potentially increasing the price of the cryptocurrency. underlying DOGE.

According to market performance, we are already seeing the aforementioned effect, with DOGE price posting a 5% return year-to-date.

[ad_2]