Markets slowly recovering after the Christmas season, certainly a good start to the year
Despite the dismal end to last year, much of the cryptocurrency market is moving in the green zone. A positive start to the trading year could be a great foundation for a continuation of the rally we expected throughout the year.
Ethereum in bullish trend
Despite the prolonged downtrend in 2022, Ethereum is starting the year with a local uptrend, and the exponential moving average forms a certain pattern that is likely to become volatility fuel for the world's second largest cryptocurrency. market.
At press time, Ethereum is trading at the 21-day moving average with numerous attempts to break it since December 20. However, the downward trend in the asset's trading volume led to a slowdown in the rally and a return to local. trend line support.
Unfortunately, the downtrend in the volume indicator could hint at an upcoming trend reversal and lead to a further decline. The only scenario where we would see a return in buying power in the market is a breakout of the 50-day moving average.
Solana's surprising breakup
In recent weeks, Solana has been experiencing one of the largest asset outflows, brought on by the Christmas season and a lack of trading activity.
Unfortunately, Solana still presents huge risks for institutional investors, so we are yet to see a recovery in trading volume and inflows. At the same time, the heavily oversold state of the asset led to the price surge we saw today. The local breakout could become the basis for SOL's recovery in the coming months, especially if investors can return some of their funds to the market.
At press time, Solana remains one of the most widely used networks in the market, with the highest number of transactions processed compared to other chains. However, asset price performance is still suppressed, with SOL falling over 93% from ATH.
Dogecoin Development Fund
The lack of use cases has been a major problem for the prominent meme coin over the years. Fortunately, the Dogecoin Foundation recently announced the creation of a new developer fund by allocating 5 million DOGE to bring more developers and attention to the core of the network.
With the growing number of developers in the Dogecoin ecosystem, we could eventually see the asset recover with the help of use cases occurring that would bring more fees and usage to the network, which could increase the price of the underlying DOGE cryptocurrency. .
According to the performance of the market, we are already witnessing the effect mentioned above, with DOGE's price showing a return of 5% since the beginning of the year.
