Names to Watch in a Potential Crypto Market Recovery

January 26, 2022

Cryptocurrencies: Daily Update

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Whether you’re trading equities or cryptocurrencies, the beginning of 2022 has been rough for everyone. Bitcoin (BTC) tumbled as far as -50% from its $69,000 all-time high, while Ethereum (ETH) fell over 55% from its own highs.

Retail traders are still waiting patiently for further clarity on the global inflation situation, as well as how the Russia-Ukraine fiasco will continue to impact global markets. Meanwhile, this selloff has created the perfect opportunity for large institutions and governments to fill the gap in the crypto market.

Whether or not you believe that the bottom is in for the crypto market, we’re working to identify which coins will be the leaders if a rapid recovery does in fact take place in the near future. We discussed Solana (SOL) in a recent report, explaining why strong technicals and even stronger user sentiment would suggest that SOL could breakout to levels never seen before.

Unfortunately, SOL as well as essentially the rest of the large-cap cryptocurrencies have since lost their long-term support levels, selling off even more. Despite the further crash in price, major players have not given up hope on Solana, and several have even doubled down on their optimism regarding the Solana network.

The biggest name that we’ve seen promote the Solana network recently is JPMorgan. Interestingly enough, JPMorgan’s recent statement has mirrored what we’ve been saying for several weeks… Ethereum’s hold over the defi space is almost guaranteed to wane, and Solana is the next in line to steal a major chunk of ETH’s market dominance.

There are expectations for the Solana-based Phantom wallet to become available on mobile devices, as well as for Solana-based NFTs to become tradable on OpenSea in the near future. Both of these events are expected to significantly bolster the mainstream usage of the Solana network, and will hopefully boost the coins price as well.

Aside from Solana, Fantom (FTM) has been getting a lot of buzz within the cryptocurrency community on Twitter, especially with Grayscale announcing this past week that they are now considering adding FTM to their list of investment products which would allow for stock traders to gain exposure to the Fantom network through a Grayscale Trust rather than having to buy the coin itself.

If this isn’t enough to catch your attention, there are also rumors floating around that FTM could be listed as a trading pair on Coinbase by as soon as Thursday 1/27. If this is confirmed, we could see FTM become available for trading by the mainstream while it has previously only been available to US-based crypto traders on exchanges like Gemini and FTX.

We can also see that FTM did in fact face a harsh selloff with the rest of the market this past week, but unlike several other defi coins FTM never broke below its 200-day moving average.

Further, FTM briefly broke below its 50-day moving average, only to be met by strong buying volume the next day to reestablish the 50-dma support level. The upside from here would be to break through resistance near all-time highs around $3.17, which would very likely see FTM go into price discovery similarly to Solana in 2021.

We’re always watching for breakout projects in the crypto/blockchain space, both in our CryptoPulse Quant model and in our discretionary research. FTM has been on our radar for some time now, and the speculation of the project getting ready to launch into the mainstream really has us excited. We encourage you to perform your own research in the Fantom network, and we’re sure you’ll be surprised and impressed by what the Fantom blockchain is building!

We fully expect to start hearing FTM mentioned in mainstream media and institutional research reports in the near future. If the market does in fact reverse to the upside, Fantom is definitely a name worth watching.

**If we discussed a cryptocurrency that you would like to trade but isn’t offered on your current crypto exchange, please see coinmarketcap.com in order to view a profile on any tradable cryptocurrency, as well as a list of exchanges that do offer the coin for trading.**


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