Bitazza Crypto Weekly: Meme Coins For Real Or Just Speculation? -

Crypto Weekly: 4 – 10 January 2022

According to CoinMarketCap analytics, Shiba Inu has received more than 188 million views on the popular Crypto price tracking site making SHIB the most viewed token over the past 12 months. The meme token managed to beat out Bitcoin for the top spot on the CMC’s most-viewed index, with BTC coming in second with 145 million views in 2021.

Meanwhile, Dogecoin, Cardano, and Ethereum rounded out the top five most viewed tokens in 2021, with each managing 107 million, 86 million, and 81 million views, respectively.

With SHIB and DOGE both cracking the top 3 in terms of popularity this year, the question remains whether these meme coins can manage to sustain their growth or whether the speculative bubble will burst soon.

While the teams behind SHIB and DOGE have revealed roadmaps detailing the planned progression and developments of the projects and tokens, market sentiments remain uncertain regarding the long-term prospects of the two canine-themed tokens. The two meme coins have struggled to shed their reputation as purely speculative tokens that are lacking in fundamentals.

MicroStrategy closed out 2021 with a bang by purchasing more than $94 million worth of Bitcoin in December. The Michael Saylor-led company bought an additional 1,914 BTC at an average price of $49,229 per unit for their holdings, bringing their Bitcoin stockpile to an eye-watering total of 124,391 BTC. MicroStrategy’s Bitcoin treasury is currently valued at approximately $3.75 billion, with MicroStrategy acquiring Bitcoin at an average price of $30,156 per BTC.

January 3, 2022, marks the 13th anniversary of Bitcoin’s “Genesis Block,” the first-ever block recorded on the Bitcoin blockchain. Bitcoin celebrated turning 13 by setting a new hash rate all-time high at 207.53 EH/s on the backs of a six-month-long hash rate rally following China’s crackdown on Crypto.

Ray Dalio, the founder of the world’s largest hedge fund, has shared his views regarding the digital asset market, with the billionaire opining that it is impossible for BTC prices to hit the $1 million mark citing BTC’s price in relation to similar assets as the main limiting factor behind Dalio’s assessment. Despite this, Dalio seems somewhat optimistic on Crypto, publicly affirming that he holds Crypto in his portfolio while praising BTC’s continued performance as a hedge against inflation.

El Salvador President Nayib Bukele continues to be bullish about Bitcoin and the prospect of increased legislative adoption, predicting that two more countries will join El Salvador in accepting BTC as legal tender this year. Bukele also foresees BTC prices reaching the $100,000 mark in 2022 amongst other bullish predictions.

Finally, Cardano co-founder Charles Hoskinson believes that 2022 will be another strong year for Cardano and the Crypto industry as a whole. According to Hoskinson, there are approximately 127 projects under development on the Cardano blockchain, with many anticipated to launch in the first half of this year. Hoskinson also shared that he expects the number of ADA users to grow tenfold from its existing 2 million user base, thanks to the exploding popularity of NFTs.

Weekly Technical Analysis: 4 – 10 January 2022

Bitcoin (BTC)

Bitcoin dropped to the $46,500 mark entering this week. If this support level cannot remain intact, BTC could see a correction that pushes BTC from its current sideways trajectory into a downtrend. To confirm a recovery, BTC will have to break through resistance at $52,000.

Ethereum (ETH)

ETH followed BTC and faced a similar retracement that pushed prices close to the $3,500 mark. If ETH can rally this week, it will have to successfully challenge resistance at $4,500 to break out of its sideways trend and embark on a rally.

Yearn Finance (YFI)

YFI managed a successful upwards reversal and generated 30.5% returns over the last week. Short-term support is set at 1,200,00 Baht, and the DeFi token will look to challenge resistance at the 1,700,000 Baht level. If its uptrend can remain intact, this could be a good opportunity to enter a YFI position for the medium-to-long term.

Sushi Swap (SUSHI)

SUSHI is up by 15.3% from last week and has outperformed the rest of the market during this period. If SUSHI can sustain its rally and successfully break through resistance at 370 Baht, look for the DEX token to ride its momentum and challenge its medium-term target at 480 Baht. SUSHI prices must remain above the support level at 260 Baht for its uptrend to continue.

Trading and Investment Considerations For The Week

Trade volume at the start of the year may not be particularly high due to minimal BTC price action. The lack of price movement has led to a decline in trading activity, which in conjunction with no real change in macro-economic factors, means that the market may not show much action during the first week of 2022.

FTM, CRV, and YFI have managed to outperform the market coming into this week, with the yearn.finance token managing an upwards reversal to enter 2022. Smart Contract platform tokens such as ATOM and ALGO have also generated solid returns and could be worth keeping an eye on this week.

Some DeFi tokens like BAL and SNX are beginning to show signs of strong improvement, suggesting that market interest and funds are beginning to flow back into the DeFi sector once more. This development could be significant, and traders are advised to keep track of DeFi projects and whether they can rally this week.

BTC will have to break through the $52,000 level first to confirm a bullish rally for the digital asset market. During this period of uncertainty, traders are advised to invest no more than one-third of their portfolio into the digital asset market as there is still significant downside risk.

Following the trend and buying when a rally is confirmed is a low-risk strategy that traders should consider. While they won’t be entering positions at the lowest possible prices, entering when technical indicators confirm an uptrend will help minimize risks.

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