- Bitcoin market dominance fell below 40%
- SEC vs Ripple could be finalized by April 2022 according to lawyers
- Cardano gains popularity among investors
Last week was rather negative one for the cryptocurrency market. Bitcoin failed to break above $52 000 and finished 2021 around $47 200, while Ethereum fell from recent high at $4100 and tested $3600 level. Bitcoin’s market dominance has continued to fall and dropped below 40% last week. That’s very close to the all-time low of 36.7% in January 2018. According to recent data from TradingPlatforms Bitcoin's declining market dominance is a sign that “altcoin season” may be around the corner. Over the last seven years, altcoin market dominance has increased threefold from 21% in 2014 to around the 60% mark this month.
Bitcoin market dominance continues to decrease. Source: Coinmarketcap
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- According to Coinglass, nearly 10,000 Bitcoin (BTC) left major United States-based exchange Coinbase on Dec. 30 in a sign that investor appetite is returning to the market.
- El Salvador President Nayib Bukele foresees bitcoin reaching $100K this year amid increasing adoption as a sovereign currency.
- According to data from Glassnode, Short Term Holder spent profit output ratio (SOPR) shows the extent of gains or losses from recently-spent coins — specifically those which last moved in the past 155 days. At the moment the median score fell below 1, SOPR shows that coins spent at a loss are declining in numbers — which may be a sign that downward momentum is losing steam.
Bitcoin short-term holder SOPR (30-day moving average) fell below 1. Source: Capriole/ Glassnode
- Bitcoin hash rate — a measure of the computing power dedicated to the network — remains near all-time highs. According to popular belief, spot price inevitably follows trends in hash rate. Some experts say the recovery showcases the network’s resilience after a plummet last year.
Bitcoin hashrate chart jumped to a record level. Source: MiningPoolStats
BITCOIN price has been moving sideways last month. It seems that until we see a clear break above support at $43 300 or resistance zone around $54 000 the further consolidation looks to be the base case scenario. Source: xStation5
RIPPLE:
- Attorney Jeremy Hogan of the Ripple community, believes that the SEC’s lawsuit against the payments giant could draw to a close around April 2022. This lifted sentiment towards Ripple.
Ripple recently bounced off the major support $0.80 which coincides with lower limit of the triangle pattern and lower limit of the 1:1 structure and is currently testing local resistance at $0.8660 which coincides with 61.8% Fibonacci retracement of the last upward wave. Should break higher occur, upward impulse may accelerate towards psychological $1.00 level. On the other hand, if sellers manage to regain control then support at $0.7115 may be at risk. Source: xStation5
CARDANO:
- Cardano is planning to expand its network this year in order to compete with Ethereum
- Cardano claims that its smart contracts would offer higher functionality to users when compared to its rivals network.
- The number of wallets that delegated their Cardano stake has climbed beyond one million which signals rising interest from investors
- Developers are working on the launch of a DeFi loan service in Africa.
- According to recent Santiment report, the Cardano blockchain has ranked first in total development activity in 2021. This may not have a direct impact on short-term market trends, however it reveals the developers month-to-month commitment to creating a working product and upgrading its features to fit its long-term roadmap.
Cardano ranked first by development activity and active contributors count in the past year. Source: Santiment
CARDANO price bounced off the support at $1.22 level which is marked with lower limit of the 1:1 structure, however buyers failed to push the price above the earlier broken lower limit of the triangle formation which coincides with 50 SMA (green line) and some sideways move can be observed. Nevertheless should a break higher occur, the next target for buyers is located at $1.79. Source: xStation5
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