Crypto Market Review, January 9

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Arman Shirinyan

Cardano is on a strong recovery streak, following a reassuring market performance

Finally, the cryptocurrency market is showing remarkable results by gaining almost 10% of its capitalization, which is causing a surge in assets like Cardano, Solana and even some coins like Dogecoin and Shiba Inu.

The reassuring growth of Cardano

Cardano was not the easiest or most profitable asset to hold in the market throughout the year. Fortunately, ADA investors received some hope after the performance ADA has shown in the market over the past few days.

Source: Trading View

After the 15% rally and a successful breakout of the local 21-day moving average, ADA surprisingly started to rise with high intensity, reaching the resistance of the 50-day moving average, which remained an unattainable target for Cardano for a while. about three months.

The last test of the aforementioned resistance level led to a quick reversal due to a lack of funding and poor market conditions. Given the capitulation of the majority of institutional and retail investors, Cardano and similar assets could show a correction amid the extended downtrend.

Solana still resists

Solana is the cryptocurrency that the majority of investors abandoned after the implosion of FTX due to the massive sell-off caused by Alameda and the failure of the exchange. Along with significant selling pressure, Solana holders were waiting for the spike in selling pressure in the market caused by the release of 80 million SOL.

Fortunately, what was once an Ethereum killer broke through the December stalemate and entered the new year with solid growth. Solana is showing a 65% return from the local low reached on January 2.

The most likely reason for such an unexpected recovery, however, is not fundamental. The rally we are seeing today is most likely related to the general market rally and Solana’s appeal to speculative traders due to the fact that it has been extremely oversold lately.

How are the meme parts doing?

Usually when the market recovers, meme coins gain solid value as investors become more risk averse and assets like DOGE and SHIB, and others are perfect tools to expose themselves to risk on the market.

While more traditional meme assets like we mentioned above are showing strong price performance, newcomers like BONK are having some serious issues. The Solana-based meme cryptocurrency is rapidly losing value, trading with a 68% loss in ATH. BONK’s fate remains uncertain as a large percentage of the distributed supply is still in the hands of the airdrop recipients.

Shiba Inu and Dogecoin are doing well in the market, gaining around 4% of their values ​​in the last 24 hours following breakouts from local resistance levels. Unfortunately, it is difficult to say whether the rally we are seeing now will prevail in the market, especially in the absence of fundamental changes in both the macroeconomic situation and the cryptocurrency market in particular.

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