The crypto market started the new year with a surge that not many saw coming. Bitcoin and Ether reached and breached some pretty impressive critical support levels. Excitement has washed over the crypto community as traders and investors rush to make the most out of the bullish action.
We Are in the Disbelief Phase
Some rejoice at the prolonged bear market finally coming to an end, however, many seem to be wary of the spike and seem to liken it to a bull trap. Several market experts have warned that the bear market is not yet over, making it clear that we’re now in what is known as the “Disbelief phase”.
At the time of writing this article, BTC is hovering around $22,650, having been up by nearly 10% in the previous seven days. At some point, the king coin even breached the $23k mark a few times and seems to have currently found support at $22,600.
As for Ether, it started out with a massive spike like Bitcoin’s. However, at the time of writing, it is currently in the red. Notably, the world’s largest altcoin has managed to maintain its spot at the $1,500 resistance level and is only down by 1.6% in the past week.
Despite the overall decent gains from the entire market, with the global crypto market cap going over $1 trillion for the first time in what feels like quite a long time, market experts like Toni Ghinea seem to think the rises are nothing but a bull trap.
Ghinea is still predicting a $600 Ether and BTC will fall back to $11k. According to the analyst, the bears will “wake up from hibernation” in March. On the other hand, popular analyst Michael van de Poppe believes that Ether will see an even more massive breakout towards the middle of the year.
He has said that:
“Some slow grind upwards and then one more sweep in the coming days and the correction should be over and we’ll continue the party.”
According to van de Poppe, Bitcoin could rally up to $35,000 and altcoins will spike up too. He did say, however, that the end of the year might be a bit hard, but he believes the market will quickly bounce back from it.
The Solana (SOL) cryptocurrency has seen its value more than double since reaching its lowest point following the FTX and Alameda incident. It has moved from trading below $9 in the last three weeks to as high as $24.75.
Market analysts are optimistic about the long-term potential of the Solana ecosystem, citing its vibrant global community and dedicated DeFi developers as reasons for this optimism.
As of today, the total value locked (TVL) in the Solana ecosystem stands at approximately $258 million, down from over $11 billion a year ago.
Despite the decline in TVL, the Solana ecosystem has seen an increase of approximately $50 million since the collapse of FTX and Alameda. Ethereum co-founder, Vitalik Buterin, believes that the Solana network has a promising future without the presence of bad actors. Riyad Carey, a research analyst at cryptocurrency data firm Kaiko, commented, “with Alameda gone, the protocol is in some sense free of that baggage and can become more community-centric.”
However, the Solana market is showing signs of bearish behavior following a strong two-week rally. One notable factor is the daily traded volume, which dropped by over 48% to $736,053,464 on Friday. Additionally, the Solana price in the 4-hour time frame is on the verge of breaking a three-week bullish trend line, which could potentially push the price to the next consolidation level of around $16.
The Solana ecosystem is supported by a dedicated team of DeFi developers and over 2,000 validators, which has led market analysts to remain optimistic about the network’s potential for growth. With the exit of FTX, the future of Solana looks promising as the network continues to gain traction.
As Messari Senior Research Analyst, Tom Dunleavy, notes “It is certainly an open question as to how sticky this new level of volume is; however, at the very least, a consistent level of volume with FTX exiting the ecosystem is a positive sign.”
The fallen cryptocurrency exchange – FTX is on its journey to restart itself under the new leadership of CEO John J Ray III. John stated that he is investigating the plans to restart the exchange which was down since November 2022.
Many high officials have been accused of fraudulent activities at FTX. However, the client base still applauds the company’s technology and suggested that the company still has a potential reboot system that may benefit its clients. John has now established a team to investigate the probability of relaunching FTX.com which is the primary international exchange operated by the company.
John also plans to improve security, and customer experience and expand its asset range available on FTX. He also plans to invest heavily in state-of-the-art security measures and hire risk management to continuously monitor and upgrade the system. In addition to that, new features and tools will be introduced to make the platform more user-friendly and easily access information.
Previously John and SBF had disagreements on whether or not FTX should have filed for Chapter 11 bankruptcy in 2022. SBF has criticized John’s approach while dealing with the situation. John stated that SBF’s remarks were “unhelpful and self-serving”
In a recent development, the team has located $5 billion in cash and liquid cryptocurrencies. John termed this as a “Herculean effort” to sort the business’s finances. The price of FTX’s native cryptocurrency, FTT, is currently being traded at $2.41, representing an increase of 34% in the past 24 hours and a 68% jump during the last seven days.
It remains to be seen whether or not Ray’s plans for FTX will come to fruition, but many in the crypto industry are optimistic about the exchange’s future under his leadership.
Sam Bankman Fried Responds to John’s Statement
Sam Bankman Fried – Ex-founder of FTX – has shared his thoughts on the new CEO John J. Ray III’s recent statement about the potential restart of the exchange. He said that he is happy that John is encouraging the idea of restarting FTX even though he was previously not in terms with it. Sam also stated that he is waiting for John to acknowledge the fact that the FTX US branch is financially stable and can return the money to the customers.
The year 2022 is drawing to a close, and all that’s left to do is examine the charts of various cryptocurrencies in order to get an idea of how these assets will behave in the not-too-distant future. Famous analyst Michael van de Poppe picks out a few cryptos to analyze and do an analysis of, and we’re gonna be talking about those tokens.
Van de Poppe believes that FTM has been trading in a sideways range for the previous 12 trading days and is consistently testing new highs. He also said that the entry had been removed, therefore that was the coin flip at $0.20. Nevertheless, a move toward $0.225 and $0.235 might be triggered by breaching and recovering $0.2075-0.21, says the analyst.
At the time of writing, one token is worth $0.203412, reflecting a decrease of 0.4% over the course of the last 24 hours but an increase of roughly 4% over the course of the previous 7 days. After falling below $0.223 at the start of last week, Fantom has shown indications of recovery, with the price recently hovering between $0.26 and $0.289.
Elrond – EGLD
The current price of EGLD is $33.98. Over the course of the last day, it has seen a price gain of 1.7%, while over the course of the last week, it has seen a price drop of 3.6%.
The Elrond bears have shown their dominance over a significant majority of the time, while EGLD investors have been left in a tangled mess as a result of this.
Michael van de Poppe says:
“I must say, I don’t have any interest in crypto like this, unless levels are getting flipped for support. In that way, regaining $39 is the first step.”
Van de Poppe believes that there has been a level hit on MATIC, and the analyst is predicting that following a solid recovery, we will be continuing to move toward $0.84.
For the last several months, the price of MATIC has been moving sideways within a wide trading range that spans between $0.69 to $1.05.
It is anticipated that the bears would sell the rally up to the 20-day exponential moving average. If the price moves in the other direction from here and breaks below $0.76, the token may go all the way down to the significant support located at $0.69.
However, if bulls are successful in driving the price over the 20-day exponential moving average, MATIC may try a rally to the $0.97 resistance level, which is located above it.
No Blockchain than Solana has been Hit Harder by the FTX Fallout, Is its End Imminent or Could Make a Comeback?
Over the past 2 years, the Solana network has rapidly risen to be one of the largest blockchains by both market cap and usage. The growth was largely driven by Sam Bankman-Fried who was both a massive investor and voice of the entire ecosystem. The FTX & Alameda were connected to Solana in 4 ways,
- The SOL token
- Solana DeFi
- Ecosystem investments
- Parts of Solana treasury
FTX & Alameda owned nearly 58.08 million SOL tokens, or 11% of the total supply. Meanwhile, SOL price has dropped more than 50% in the past seven days, but it is not clear how much of this has been dumped by FTX compared to the other investors.
Apart from SOL, Solana DeFi also has been a hard hit as the TVL has tanked from $10.17 billion in November to $327 million at the moment. Alongside, Serum, the top DEX on Solana launched by SBF also dropped heavily along with other projects like Magic Eden & Phantom.
Mainly, a critical issue with the Solana DeFi is its wrapped token assets. The soBTC & soETH dumped heavily as they both were backed by collateral on FTX. Lastly, the Solana Foundation had some direct exposure of its treasury to FTX. They have $1M in assets stuck on FTX before withdrawals were paused. They also hold 3.24M common shares of FTX trading & 3.43 million in FTT. Unfortunately, both are heading towards $0.
The Aftermaths of the Impact!
In a recent update, Tether announced the moving of 1 billion USDT from Solana to Ethereum without changing the total supply.
Tether said that it will conduct a chain swap to move 1 billion USDT from Solana to Ethereum to reduce the total amount of circulating supply on Solana. Binance had earlier suspended USDC & USDT from Solana but quickly resumed them, while Okex delisted both on Solana & stopped accepting deposits & withdrawals. Meanwhile, Circle confirmed the normal functioning of USDC on Solana.
Will Solana Bounce Back or Left to Meet its End?
Undoubtedly, the situation for Solana is extremely bad at the moment. However, it does not definitely mean that it’s time to write off Solana. Here are the possible reasons why the network could bounce back finely.
- Large Treasury
- Strong Developer Community
- Thriving NFT ecosystem
- High network activity
Collectively, we are still in the early stages of cryptocurrency, and thus, it is too early to predict whether the Solana ecosystem will die or not. The SOL price and the entire ecosystem may revive similarly to what Ethereum did back in 2018.
Most traders have been sitting on the sidelines from Bitcoin as it struggles to end the current consolidation zone. The price of bitcoin is still hovering around $19,300 and is moving sideways on lower timescales. Since it has been fluctuating within the same range for several weeks, the price is struggling to gain momentum.
BTC price To Initiate Fresh Rally!
A seasoned professional trader, Scott Redler in a recent tweet said that bitcoin is due on the cusp of another significant breakout. The analyst believes that the BTC price will eventually rise higher now.
Redler predicted last month that the price of Bitcoin may fall to $10,000 if it managed to hold the $17,600 mark, which continues to be the 2022 low.
Bitcoin Won’t Crash 50%
Many analysts predicted that the BTC price is following a similar price pattern as that of 2018, and thus is on the verge of dropping 50% in the coming days. But the on-chain platform crypto quant has a different view, As per the platform, Analyst comparing BTC’s current price action to November 2018 is wrong.
According to the crypto quant, the market is already in a bear market and has experienced a drop similar to November 2018. As per the analysis, the November 2018 drop from $6k to $3k is very similar to the fall from $30k to $18k.
According to the crypto quant, the market has already entered a bear market and has fallen like it did in November 2018. As per the analysis, the decline from $6k to $3k in November 2018 is quite similar to the decline from $30k to $18k.
Furthermore, Onchain Edge concludes in the comments that now is a good time to start accumulating Bitcoin on a dollar-cost-averaging (DCA) basis. Even if the price declines, the analyst believes that the bottom is close.