13 Jan 2022

Bitcoin, Cardano and Decentraland Market Analysis from the past week.

Market Analysis from the last week of the most influent markets in the cryptocurrency world.


After a few weeks of bouncing between key support and resistance levels, mainly the 20EMA and 50EMA levels, Bitcoin made a downwards move, as the $46k support level did not hold. This gradual down move saw bitcoin trade as low as below $40k, before making a recovery back to the $42k range. This move was not unexpected as the support level of $46k was a weak one, and saw prices test the next support level of $40k, an important one for psychological reasons.
BTC/BUSD weekly candles chart with supports and resistance
BTC/BUSD weekly candles chart with supports and resistance
Prices dipping below $42k was a move short lived as just a few days later the trend seems to be moving back upwards towards $43k. It is essential for bitcoin to break this level and consolidate in the $43k-46k range in order to be able to make an upwards move. It would be ideal to see bitcoin regain the 50EMA that currently is around $44.8k, and close the week above this level. This would be a great sign and could signal a bigger move back towards the $50k range.

The likely scenario in the following weeks, as bitcoin is approaching the $43k, is either a test of $43k and rejection of this level, or regaining the upper support ($43k-46k) and a few days of consolidation to confirm this level. The latter one would be the best scenario and would be extremely positive for altcoins, that once a sideways move of BTC is confirmed, could have a rally of their own.

A technical indicator that suggests that it might be a good time to buy more bitcoin is the Fear and Greed Index. This is an indicator based on momentum that aims to represent the feeling of traders of an asset and give a number between 0 to 100, from extreme fear to extreme greed, to quantify this sentiment. When the indicator is in fear, just like it is right now at around 20, it means that many people are panicking and selling, and this might be a great opportunity to buy at lower prices. As the indicator is now below 30, it's in extreme fear, suggesting long-term investors should buy more Bitcoin.

Relevant BTC News

In recent weeks many have been wondering why Bitcoin is going down. Whilst it's always hard to pinpoint one single reason, many believe that this drop is being caused by the current unrest and events that are occurring in Kazakhstan.
In recent months the central Asian nation has risen in importance in the crypto world, as after bans on mining crypto in China and other countries, Kazakhstan became the world's second-largest center for bitcoin mining after the United States. It's estimated that in August the country was hosting 18% of global Bitcoin mining.

What many believe caused the crash in Bitcoin prices is that the second-biggest country for Bitcoin mining lost its internet access, due to the violent clashes between protesters, police, and the army. The protests that seemed to have been caused by the rise in fuel prices resulted in the internet being shut down in what appears to be an intent to disrupt protestors' communications. It is still not clear how long this will last but it will likely impact Bitcoin and other cryptocurrencies.

Read more https://www.theguardian.com/world/2022/jan/06/kazakhstan-bitcoin-internet-shutdown


Over the last few months, Cardano has been performing really well from a fundamental perspective, forming new partnerships with high-level players, however, the same can't be said about the performance of its price. Cardano price has continued to fall and has now dropped back to prices levels prior to the beginning of 2021, virtually wiping away a whole year's gains. Why is Cardano dropping is what many are wondering.
ADA/BUSD weekly candles chart with supports and resistance
ADA/BUSD weekly candles chart with supports and resistance
Since dropping below the 50EMA level, prices have tried to regain this level but have been rejected at the $1.46 resistance level. Following that, they crashed back to the lower support on which they are currently at, around $1.18. This is a key level as it's the last major support level.

If ADA fails to hold this level it is likely that it would crash a further 60/70%, which would be catastrophic considering it has already lost over 60% from its all-time high prices of $3.1 back in August 2021.

Will Cardano go up after so many weeks of downfall? Likely, as based on past behavior when we have been at historic accumulation levels. It's likely to see ADA bounce back and make a move back towards the upper resistance at $1.46. It is possible that price might range between the current support and resistance levels.

The main key level that ADA needs to regain is above the upper resistance at $1.50, This is a particularly important level as it's on the 50EMA. Once prices can rise above this level and consolidate above the moving average it is likely that the uptrend will continue further and see ADA retest the $2 mark. Until then the sentiment remains bearing.

Relevant ADA news

The first few days of 2022 have already been great for Cardano that saw the year start off in the right direction. Veritree, a project on the cardano blockchain announced a partnership with Samsung. Veritree is a fully integrated platform that uses blockchain for transparency in tree planting, providing a restoration toolkit to allow partners to collect and manage ground-level data. Samsung and Cardano have partnered through Veritree, in order to be able to incorporate this technology in a nature-based solution, an area where blockchain has currently not been deployed.
Additionally, Cardano has recently tweeted how it has completed its first ITO, a project where they collected contributions from the community and planted a whole forest, called Cardano Forest. The forest has over 1,000,000 trees, and it's one of the recent attempts of Cardano to help solve global challenges and 'heal the world' with the help of blockchain technology.


Decentraland (MANA) has been on of the most talked about coins of 2021, mainly for its applications in the Metaverse. In just a year it saw its price rise more than 6000%, making it a favorite for crypto investors. Since reaching its ATH in December, MANA has declined, and has started off the year in the same way.
MANA/BUSD daily candles chart with supports and resistance
MANA/BUSD daily candles chart with supports and resistance
In early January, price failed to hold the 20EMA and 50EMA levels, and similarly to Bitcoin, declined at lower support levels. MANA is currently holding above the support level at $2.8, which also coincides with the 100EMA level. If prices can hold above this level it's likely that they will bounce back and test the upper resistance level at $3.6.

The likely scenario in the next few weeks is a sideways move between the current support and resistance levels of $2.8 and $3.5. This would be a great sign for MANA as it would show some price consolidation, suggesting that after regaining both the 20EMA and 50EMA levels it might be ready for a further upwards move.
However, if the current support level doesn't hold it wouldn't be unlikely to see prices test the next and more significant support level at $2.45. This would be a great opportunity to buy MANA at highly discounted prices. The sentiment for Decentraland Twitter users is quite positive and suggests that many believe that an upwards move will occur early in 2022.

Relevant MANA news

In recent Mana decentraland news the tech-giant Samsung decided to enter the metaverse with their first Samsung metaverse store. The store, called 837X, inspired by the address of their flagship store in New York City, is a virtual reality experience created in the Decentraland Metaverse that allows users to feel like they are shopping in an actual store.
The store, which is built on the Ethereum blockchain, aims to captivate fans in a digital adventure through the Connectivity Theater and Sustainability Forest to complete quests, earn badges and celebrate this new customisation stage. From the Connectivity Theater people will be able to access recents news about the company as well as to see the Sustainability Forest, a project that Samsung started with another crypto venture, Veritree, to combat climate change by planting trees. This is just one of the latest Samsung decentraland news, signalling how many tech giants are planning new collaborations in this realm.
BTC/BUSD, ADA/BUSD, and MANA/BUSD are available for trading on yanda.io dApp, together with hundreds of different market pairs.

Market Analysis will be published on our blog weekly.
Join us on Twitter and Discord to talk about crypto trading.

Author: Matteo Poole