Crypto

Dogecoin (DOGE) on Verge of Golden Cross Signal: Crypto Market Review, January 24

Arman Shirinyan

Markets are at a tipping point: we are either seeing a long-term reversal or a continuation of the downtrend

Markets still hanging by a thread as the majority of assets have faced their local resistance and are not moving forward in the past few days, which is just healthy consolidation, and the situation could change from minute to minute. the other.

The important signal of Dogecoin

As mentioned in our previous reviews, Dogecoin was about to receive a fundamental reversal signal, a cross between the 50 and 200 day moving averages, also known as the “golden cross”. Usually, this is considered the go-to signal for a long-term reversal because it suggests that the medium-term movement of an asset is outweighing the long-term movement.

DOGE card
Source: TradingView

Given the rise of meme assets in the market, the suppressed performance of Dogecoin has raised some concerns, but at the same time, there is no need to worry or bet on the reversal of the asset. just because of a lack of momentum.

For the foreseeable future, we may see an acceleration in the rally thanks to the aforementioned signal and general market recovery.

Ethereum stalls

After experiencing a strong recovery a few days ago, Ethereum ran into problems on its ascent as it was unable to break the local resistance level at around $1,610. While it might seem that the 200-day moving average is the barrier that the second largest cryptocurrency in the market could not break through, that is not necessarily true.

If we take a look at the chart, it becomes clear that the line that connects the local highs throughout the four-month period is the real resistance that Ether needs to break. Unfortunately, it doesn’t look like Ether is breaking it on its own, without support from the rest of the market.

According to Ultrasons.money, Ethereum issuance has normalized and the cryptocurrency has become deflationary again. However, the constant burning of ETH is not enough on its own, as it does not directly affect the performance of the second largest cryptocurrency in the market.

However, the resumption of burn operations on Ethereum is the result of increased network activity, which could lead to the improved performance of the Ether market, as it generally depends on the income of validators, solutions and network companies.

Market-wide breakdown

The short-term bull run that started on cryptocurrency market recently would not have been possible without the recovery of traditional markets. The S&P500 index, which reflects broad market trends, also moved higher in recent weeks, but faced resistance soon after.

For now, it has already managed to break the resistance level of the long trendline and could gain a foothold above it, starting another wave in the crypto and traditional markets. However, some experts assume that this is just a fake out in the middle of the bear market, and investors should be prepared for a reversal and a continuation of the trend we have been seeing since late 2021. .

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