HomeCryptoIs the rally on Ethereum (ETH), BNB, Bitcoin and others over? Cryptocurrency Market Analysis, January 20
Is the rally on Ethereum (ETH), BNB, Bitcoin and others over? Cryptocurrency Market Analysis, January 20
January 21, 2023
Markets are slowly falling or entering consolidation channels, which could be the first sign of a long-term reversal
The explosive rally that originated earlier in the month is nearing its logical conclusion as most digital assets have reversed from their local highs. However, there are some exceptions such as XRP which remain in the uptrend.
What will hit the market next week?
As the bull market cools off, we could witness a much stronger and deeper correction on popular assets like Ethereum, BNB or even Bitcoin. While sentiment-based indicators show that investors are no longer panicking, fundamental factors that could drive the cryptocurrency market have not appeared recently.
Open interest in most cryptocurrency derivatives trading platforms is on the rise, which can be taken as an indication of the recovery of liquidity and depth. Unfortunately, most of the recurring volume in the market could be tied to bears who are trying to get an edge on bullish retail investors.
Most cryptocurrencies, including Bitcoin, are still trading in the uptrend and have not yet completely lost their foothold in the market. However, most of this activity has entered local consolidation channels, which could become the basis of a bearish reversal that will only exacerbate the long-term state of the market.
The quick reversal of Shiba Inu
The celebration for the Shiba Inu’s unexpected turnaround and breakout didn’t last long. SHIB broke through the 200-day moving average explosively on Wednesday the 18th, leaving behind most of the bears who had built up short positions at the aforementioned level.
However, the breakout that took SHIB to its 75-day high quickly faded after the whales provided significant selling pressure, collapsing the premature ladder of support levels that weren’t ready for an influx of selling.
Unfortunately, the Shiba Inu has not yet found any strength to recover strongly and has remained at the same price level as three days ago. After the whales dumped a huge amount of accumulated SHIB tokens, the bulls are no longer keen to support the meme token during its ascent, which is why they are unlikely to see volatile upward moves in the foreseeable future.
XRP remains adamant
Despite the Genesis bankruptcy announcement and the market reversal, XRP does not appear to be losing the momentum it had previously gained, as it has been in the local uptrend since early January.
At press time, XRP is trading above its 50-day moving average, which can be considered a reversal zone for the asset. The Relative Strength Index is also too far from the “overbought” zone for XRP, which most likely means that the asset has enough room to grow in the coming weeks or even months.
Unfortunately, not much has happened around the XRP ecosystem despite numerous statements about the fundamental importance of the network.