Digital Asset Insights Digital Asset Insights #98

Welcome to the New Year, experts and crypto analysts are positive about the year and we could see some massive improvements on the leading coins if you would make the right investments. Here is the recap of the final week of last year and the state of the market this year so far.


Bitcoin (BTC)

At the beginning of the week, Bitcoin price auctioned at $16,843. On Monday, Bitcoin price was set to jump as markets were on complete hiatus between Christmas and New Year. As thin liquidity will be the crucial element of market conditions that traders need to be aware of, bulls got to seize this opportunity to pump the price action higher, as there will be no bears in sight. This means a sharp rally could unfold this last trading week of the year.


BTC is moving away from $16,020 and faces just one important resistance element to the upside. The 55-day Simple Moving Average (SMA) comes to around $17,300. If bulls can keep their act together and refrain from taking profit at that level, the rally could stretch toward $19,036.


Bitcoin recently outperformed some tech stocks, proving itself as a reliable hedge against inflation. Tech stocks like Google (-22.02%), Amazon (-23.79%), Apple (-24.65%), and Microsoft (-28.51%) performed below BTC (-18.39%) over the last six months. This figure indicates that despite the general downturn of crypto assets, BTC managed to pull a better market performance than other tech stocks.

BTC’s limited supply and decentralization made it a good hedge against inflation. In addition, the predetermined circulation of BTC implies that there will be no excess supply, helping it keep inflation at bay. Similarly, BTC’s production/mining rate is designed to drop by 50% every four years. With that, BTC will become more scarce and less vulnerable to inflation.


Bitcoin faced many obstacles last year, but it attracted record numbers of retail investors. It has also outperformed stable assets like gold in certain circumstances. While Bitcoin has not been a good hedge against inflation in the short term, the narrative shifts when we focus on long-term performance.

Bitcoin price prediction is neutral during the US session, but BTC has shown a slight bullish recovery, having bounced off above the $16,430 level. Yet, the narrow trading range of $16,400 to $16,750 is still intact.


At the close of the year, the bitcoin price was $16,624, with a trading volume of $9.5 billion in the last 24 hours. Bitcoin’s 4-hourly chart showed that the cryptocurrency was finding strength near $16,460, where an upward trend line could be seen.


Bitcoin might reach $16,990 if it breaks out to the upside from the $16,720 mark, the last resistance zone.


On Jan 02, Bitcoin is trading slightly bullish, having bounced off the support level of $16,500 to reach $16,650. Robert Kiyosaki, a well-known author, recently disclosed that he had purchased more Bitcoin and explained why he did so, claiming that the Securities and Exchange Commission’s (SEC) laws will destroy most other currencies. Robert Kiyosaki, the author of Rich Dad Poor Dad, has stated that his main motivation for investing in Bitcoin is his conviction that the SEC would “destroy” most other tokens with its laws. Kiyosaki disclosed in a tweet on December 30 that he is investing in Bitcoin and that he is enthusiastic about the fact that it is recognized as a commodity similar to gold, silver, and oil.

Bitcoin has added 1.4% in the last 24 hours, reaching the 16.7K level. It is a new attempt to test the 50-day moving average on a general lull and an effort by the bulls to paint a more optimistic technical picture with less strength while liquidity remains depressed.


Ethereum (ETH)

As the year came to an end, the price of Ethereum was $1,211, with a $2.7 billion 24-hour trading volume. ETH found immediate support at $1,180. This support level was extended by a rising trend line observed over a 4-hour time period.


On the plus side, a bullish breakout of the $1,200 level could take ETH to the $1,230 level. Increased demand for ETH, on the other hand, may expose its price to the next resistance area of $1,280. While support remains around $1,280, a break below this can open up more room for selling until $1,150. The RSI, MACD, and 50-day simple moving average all indicate a bullish trend. So, look for buying opportunities.


Ethereum is choppy, oscillating in a narrow range of $1,180 to 1,210, and a break of this level has the potential to determine future trends. Ethereum (ETH) has had a rough year, but its underlying worth is higher than its current market price.


The global cryptocurrency market has been sending mixed signals, with a market valuation of less than $800 billion at the start of the new year. The two most important currencies, Bitcoin and Ethereum, have made some gains and continue to trade in the green.


On the last day of last year, Ethereum price traded at $1,276 and consolidated within a contracting range. Based on Elliott Wave Theory, as long as Wave 1 remains unbreeched, ETH still has the potential for one more Crypto rally in the years to come. A second bullish attempt at the All-time highs would yield a 280% increase from the current market value. Thus the $366.80 level can be used as a marker while investing with a dollar-cost average approach.


Ripple (XRP)

Ripple price again showed signs of a recovery as the cryptocurrency jumped over 5% on Monday, as a Christmas rally seemed to be underway after all. The profit stalled as traders could not unchain themselves from the recession fears for 2023. Even in the quietest week of the year, the recession risk still hangs over the price action as smaller data elements indicate that a recession is unavoidable.


The ideal candidate for the first test for support comes in at $0.3333, and more to the downside, $0.3043 comes into play, with mounting losses for the week between Christmas and New Year reaching towards -17%.


Any upside moves need to be firmly aligned and confirmed by a clear break on the chart. Of course, there is only one level to watch then: $0.3710, as that level has been substantial in support throughout November and is now acting as resistance. Once Ripple price can break above there, $0.3850 pops up quite quickly, with the 55-day Simple Moving Average (SMA) and the 200-day SMA intersecting with one another nearby.


While Elliot Wave provides a cleaner narrative for Bitcoin and Ethereum, Ripple’s technicals seem more challenging to apply a macro count. XRP price has experienced turbulent swings in both directions since the pandemic lows at $0.1735. Still, classical technical analysis shows the possibility for a uptrend.


XRP price is trading at $0.352, The low end of the range lies at $0.30, and the upper bounds are at $0.47, which creates the potential for a 40% increase in market value.


Cardano (ADA)

At the beginning of the week, Cardano price auctioned at $0.256. The bulls re-engaged with the 8-day exponential moving average for the forest time after landing in the mid-$0.20 zone. The bulls need to establish serious momentum to void the bearish potential. A breach above the 8-day exponential moving average at $0.265 could catalyze a spike towards the other side of the previous trading range, where the 21-day simple moving average hovers at $0.28. The Cardano price would rise by 10% if the bulls were successful.


Cardano gained about 1.5%. Cardano (ADA) price action tanked over 1% on Tuesday as the ASIA PAC and European sessions are seeing cryptocurrencies take a step back. Cardano price could find support from bulls at that ascending trend line and see a pushback upwards. This would be the fourth test and possibly trigger a break of the total level at $0.265. Once broken, expect a bullish rally up to $0.297, flirting with $0.300 at the beginning of 2023.


Cardano ranks first among top blockchain protocols in 2022 in terms of development activity. The Ethereum killer outperformed Polkadot, Cosmos, Elrond, Optimism and others to top the development activity chart. Cardano, a smart contract network considered an Ethereum alternative, witnessed the highest development activity when compared to other altcoins in the crypto ecosystem. Spike in development activity could fuel a bullish sentiment among ADA holders as the altcoin struggles to wipe out losses from crypto winter.


Cardano development activity leaves competitors to bite the dust. Cardano ranks eighth in the list with an ROI of 102. It’s important to note that despite hitting developmental milestones and the massive ROI for holders the altcoin lags behind in total value locked. This metric is the DeFi equivalent of total market capitalisation.


Solana (SOL)

Solana price currently traded at $11.32, less than 5% above the yearly low. In the likely event that the liquidity zone is breached, the bulls would have to rely on support levels established in 2021 during SOL’s infamous 10x bull run. Key levels would be $9 and potentially $7.80, resulting in up to a 30% decline from Solana’s current market value.


As the year came to a close. the bulls needed to conquer at least half of the previous weekly range near $13 to create the potential for more uptrend opportunities. A breach above the aforementioned level could enable SOL to challenge December’s monthly high at $14.96. The self-proposed “Ethereum killer” smart contract token would rise by 30% if the bullish scenario occurred.


SOL rebounded from Thursday’s low of $8.19 and retook the $9.50 range where it had been trading for much of the day. In the words of Sam Bankman-Fried “Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future,” Buterin tweeted shortly before SOL’s Thursday recovery began.


On the daily chart of the last day of the year, SOL’s price rebounded to around $10.25, up over 20% from its previous day’s low of approximately $8. The latest Solana price rebound hints at the possibility of more upside heading into 2023. That is primarily due to Doji — a candlestick pattern that forms when the asset opens and closes near or at the same level in a specific timeframe. SOL formed what appeared to be a “standard Doji” on its daily chart on Dec. 29.


Traditional analysts consider a Doji as a potential reversal candlestick pattern, given it shows that bears and bulls are at a a stalemate. Therefore, from a technical perspective, a Doji formation during a long uptrend period could suggest a bearish reversal in the making, and vice versa. SOL’s Doji has appeared after a long downtrend period, as shown in the daily chart below. That, coupled with the token’s oversold (<30) relative strength index reading, suggests that an extended bullish reversal may happen in 2023.

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Digital Asset Insights

Digital Asset Insights #98

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The post Digital Asset Insights Digital Asset Insights #98 appeared first on JP Fund Services.