Cryptocurrency Market Analysis, December 23rd

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Arman Shirinyan

The market isn’t closing out the year on a high note, but there are some exceptions

The last week before the new year does not end on a positive note as the market ends the week with most assets in losses, showing the lack of any positivity among investors, which promises nothing but pain by the end of the year. 2022.

Dogecoin profit peak

Despite a dismal end to 2022, Dogecoin has had a relatively good year as the meme asset has gone through multiple triple-digit rallies, broken numerous resistance levels, and proved to be far more resilient than some “serious” assets.

DOGE chart
Source: TradingView

In October, Dogecoin explosively gained over 140% of its value thanks to Elon Musk’s Twitter drama. The asset price soared after investors speculated that Musk could add support for Dogecoin as the social media platform’s native cryptocurrency. The assumption was based solely on Musk’s continued support of DOGE over the years.

Unfortunately, by the end of the year, DOGE lost most of its gains but recently entered a short-term uptrend, bringing more profits to investors than most other “serious assets” like Ethereum or Bitcoin.

Solana tests the fund again

Despite a relatively steady performance over the past few weeks, Solana hasn’t gotten a helping hand from the market and is still struggling to break out of the bottom zone. Recently, Solana has dropped once again, losing what she gained in December.

As mentioned above, Solana’s performance will not stabilize until the cryptocurrency has finally gained some kind of trust among institutional investors. As the benchmark for keeping the Bankman-Fried empire at bay, Solana took the hit first, dropping to multi-year lows.

Since the imposition, millions of SOLs have been withdrawn from various staking contracts and trading platforms, meaning that at any moment the market could be hit with massive selling pressure that would kill any sort of recovery rally for Solana .

Until then, the Solana ecosystem is still actively used by NFT and DeFi enthusiasts, which could become the sole source of funding for the network in the near future.

Polygon’s huge record

As covered by U.Today earlier, Polygon recently celebrated a new milestone, the number of unique entities on the network surpassed the 200 million mark this week, setting a new all-time high.

Such a drastic growth of the network is a strong fundamental signal: Polygon is growing despite all the problems of the cryptocurrency market. With the rapid growth and development, the market value of the underlying token is expected to recover eventually.

As of press time, MATIC is trading at $0.8, gaining a modest 0.77% over the past 24 hours. The asset has moved in a continuous rangebound, with only one breakout attempt. The lack of action and consistent volume suggests that the token is in the process of accumulation but, at the same time, remains in a prolonged downtrend.

For now, MATIC is trading at a support level it hasn’t broken in the last 70 days.

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