Cryptocurrency Market Analysis January 23rd

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Arman Shirinyan

Shiba Inu, Dogecoin and other assets are getting enough support to stay afloat but not move forward

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

Shiba Inu fighting the resistance

Despite the decelerating rally on Shiba Inu, the meme asset could still aim for further recovery following the increase in the amount of Shiba Inu being destroyed daily in the market. Also, users are getting more confident about the launch of the Shibarium project which is expected to bring more fundamental value to the network.

SHIB chart

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

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

As of press time, the Shiba Inu is trading at $0.000012 and is consolidating at the pivotal resistance level reflected in the six-month trendline which, if broken, should serve as a strong start to the SHIB’s upward move.

Lido Finanza on the rise

The Lido Finance token also joins the wild ride on the market as the number of staked Ethereum exceeds the important threshold of 16 million tokens. The increase in the amount of Ether staked accelerated during the market’s bull run as investors feel more confident.

Before the market recovery, most investors were too afraid of losing their funds in staking contracts due to the inability to realize assets in the market due to the lockdown period. Lido Finance partially solves this problem by providing liquid tokens in exchange for staked Ethereum that are tied to the main cryptocurrency on a 1:1 ratio.

Traditionally, Lido Finance follows the performance of Ethereum on the market, but in this case the main driver for LDO is most likely the market itself, rather than the performance of Ethereum.

Dogecoin does not lag behind

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

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

Before the market-wide recovery, Dogecoin followed a sharp price increase after Elon Musk’s takeover of Twitter. No drivers for DOGE appeared, after which a stalemate occurred, along with the further decline of the meme coin.

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