Crypto Market Review, Jan 24th

The market is still hanging by a thin thread as the majority of assets are facing local resistance and have not moved forward for the past few days.

Key Signals for Dogecoin

As we mentioned in our previous review, Dogecoin is on the verge of receiving a basic reversal signal, a cross between the 50-day and 200-day moving averages, also known as the ‘golden cross’. Usually, this is seen as an important signal of a long-term reversal, as it suggests that the asset’s medium-term movement is dominating its long-term movement.

Given the rise of memetic assets in the market, Dogecoin’s subdued performance has raised some concerns, but at the same time, there’s no need to worry or bet on an asset reversal just because it lacks momentum. .

In the near future, the rally could accelerate thanks to the aforementioned signals and an overall market recovery.

Ethereum is stagnant

After seeing a solid recovery a few days ago, Ethereum is facing some problems on its way up as it failed to break out of the local resistance level at around $1,610. , may seem like an impenetrable barrier for the second largest cryptocurrency on the market, but this is not necessarily true.

Looking at the chart, it becomes clear that the line connecting the four-month local tops is the real resistance that Ether must break. Unfortunately, without support from other markets, it doesn’t look like Ether is beating it alone.

According to ultrasound.money, Ethereum issuance has normalized and the cryptocurrency is in deflation again. However, the constant burning of ETH is not enough as he does not directly affect the performance of the second largest cryptocurrency in the market.

However, the recovery of write operations on Ethereum is a result of increased network activity and typically depends on the revenue of validators, solutions and companies on the network, which could lead to improved market performance for Ethereum. I have.

Overall market breakout

The short-term bull market that recently started in the cryptocurrency market would not have been possible without a traditional market recovery. The S&P500 index, which reflects the overall market trend, has also been on an upward trend in recent weeks, but soon faced resistance.

For now, it has already successfully broken the long trendline resistance level and may gain a foothold above it and start another wave in both crypto and traditional markets. , some experts believe this is just a disguise in a bear market, and investors should prepare for the trend reversal and continuation we’ve seen since the end of 2021.