Crypto Market Review, January 23

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Arman Shirinyan

Shiba Inu, Dogecoin and Other Assets Get Enough Support to Stay Afloat But Not Advance

As cryptocurrency investors take a wait-and-see approach to the market, the majority of assets are slowly entering local consolidation channels which could act as a temporary cooling before volatility returns to the markets.

Shiba Inu fights the resistance

Despite the deceleration in the rally on Shiba Inu, the meme asset could still aim for a further rally following the increase in the amount of Shiba Inu that are destroyed daily in the market. Moreover, users are more and more confident about the launch of the Shibarium project which should bring more fundamental value to the network.

From a market perspective, Shiba Inu acts as one of the best risk exposure tools in the cryptocurrency industry. SHIB’s volatility has always appealed to short to medium term traders and investors who were trying to make quick profits using SHIB’s huge scalability.

Since the start of the rally, Shiba Inu has gained over 47% of its value in less than a month. This explosive performance caught the attention of the aforementioned investors and led to an increase in network activity, which directly affects the burn rate.

At press time, Shiba Inu is trading at $0.000012 and consolidating at the pivotal resistance level reflected in the six-month trendline which, if broken, should be a good start for the move higher. SHIB rise.

Lido Finance on the rise

The Lido Finance token also joins the rat race in the market as the number of Ethereum staked exceeds the important threshold of 16 million tokens. The increase in the amount of Ether being staked accelerated during the bull run in the market as investors felt more confident.

Before the market rally, most investors were too scared of losing their funds in staking contracts due to the inability to realize assets in the market due to the lock-in period. Lido Finance partially solves this problem by providing liquid tokens in exchange for staked Ethereum that are pegged to the major cryptocurrency at a 1:1 ratio.

Traditionally, Lido Finance tracks Ethereum’s performance in the market, but in this case the main driver of LDO is most likely the market itself, rather than Ethereum’s performance.

Dogecoin does not fall behind

Despite the lack of action on the first coin even hitting the market, DOGE may still surprise investors in the future. Compared to the rest of the market, Dogecoin is moving relatively slowly, gaining “only” 30% of its value compared to SHIB’s triple-digit gain.

However, DOGE has barely broken through the serious resistance level and may soon provide the golden cross signal between the 50- and 200-day moving averages. Such a strong signal could fuel the massive inflow of funds into the asset and trigger a real rally.

Prior to the market-wide rally, Dogecoin ranged after a sharp price increase following the Elon Musk takeover of Twitter. No driver for DOGE appeared, after which a stalemate occurred, as well as the continued decline of the coin meme.

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