January saw struggling financial markets, worrying reports from the FED, and a relative continuation of the crypto dump. Many analysts are signaling now is the time to buy and add to their portfolios, while others suggest there is further downside potential with regulatory rumours, continued inflation and market uncertainties . In this article, we’ll cover the latest price predictions for the most essential coins, analyze if it’s another drop to buy, and reveal our large-cap underdog pick for the month.
– Bitcoin since 2020 (block per day)
January was quite bearish for the crypto as the slide that started in November continued. Bitcoin (BTC) has now appeared to stabilize, having briefly touched below its $35,000 support level and flirted with an even lower drop. This week has been complicated with all the noise from the FED report detailing their upcoming plans to raise rates, which generally have a negative effect on crypto. Usually you will see crypto mirror trends in the stock market, and this week more or less followed suit. However, for now, cryptocurrencies appeared to rally and stabilize, with some analysts suggesting the dump is over.
The big question was whether BTC would fall to its next support level of around $30,000 that we saw in June of last year, but at the moment it doesn’t look like that will happen. Instead, it looks like the crypto is rising in parallel with inflation levels; this inflation hedge is widely believed to be the reason most people buy Bitcoin, an interpretation that suggests BTC will continue to rally and lead the breakout from this three-month long decline.
Ethereum (ETH) has seen a major sell-off over the past week. Some suggest this was due to capital being injected into other Alt coins, leaving it feeling that it is currently undervalued at $2500. It’s hard to guess where ETH will go in the coming weeks; of course, it will mostly follow in the footsteps of Bitcoin, but Ethereum 2.0 lingers in the background as potentially its biggest catalyst yet.
Many expect this year to be the year ETH 2 finally begins its rollout and when it does, prices could reach $8,000.
According to the current short-term forecast, ETH should stay around $2,500.
Solana (SOL) has been in the news again recently, dropping 67% from previous highs. This is again due to performance issues with the native platform itself, specifically the same DDOS (denial of service attack) attacks they had issues with in September and December 2021. Due to the system of proof of history, Solana uses , it makes it vulnerable to situations where its servers can be overloaded.
On this occasion, it was market volatility that actually triggered a crash, and some users were further frustrated by founder Anatoloy Yakovenko’s tweet of a screenshot showing a Solana node reporting 2.05 million duplicate data packets submitted to the network, with the caption “lol”. We usually see Solana get rid of these events, but not this time.
Solana now sits around $90, which is the lowest since her first big pump in August. It originally held at $135 with the latest crash, but the rig’s collapse has led some to question its future and look into rivals like Avalanche.
– Solana since 2021 (block per day)
Our outsider of the month: Cardano
Cardano (ADA) has been one of the worst performers in the recent bear market. This was mainly due to the delay in releasing its smart contract functionality, basically because it was just more complex than the ADA team had envisioned.
Despite this, activity on Cardano has continued to grow with some of its most promising apps raising huge capital, some of which are paving the way for successful stablecoin integration – a critical component of market success.
ADA had a short pump 10 days ago to around $1.60, but is now back to around $1.05, a level reflecting the general bear market.
The price predictions for Cardano are bullish and could reach $2.20, especially when they roll out their smart contract compatibility.