20 Jan 2022

Bitcoin, Dogecoin and SLP Market Analysis from the past week.

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

BTC/BUSD Market

After two weeks ago when the support level didn't hold, Bitcoin tried to make a recovery with prices reaching close to the 50EMA. Over the past week, the BTC price tried to regain the $43k-45k level, after briefly touching the lower support zone between $41k-$39.9. Based on how Bitcoin started the week and its chart on lower time frames, it can't be excluded that the price might range between these two zones in the coming days.
BTC/BUSD weekly candles chart with supports and resistance
BTC/BUSD weekly candles chart with supports and resistance
Bitcoin today has started bearish, after opening close to the lower bound of the upper resistance level, the price is dropping towards $40k. This was an important level as if it had been regained it would have seen price action coinciding with the 20EMA (on the daily), a positive sign for prices to move upwards.

On the weekly, as previously mentioned, bitcoin tried to regain the 50EMA, but couldn't, likely indicating it might drop further before making a recovery. The support level of $40.6k has already been touched, but it's likely to see prices test its lower bound around $39k: this would mark a total retracement of over 43% from ATH prices back in November.

The likely and best scenario for bitcoin price at the moment would be a lateralization move, with prices ranging between $39.1k-$45k, where eventually in a few weeks bitcoin regains the 50EMA and 20EMA, as these levels would have lowered closer to $43k. Once these levels have been reached it is likely to see Bitcoin make a quick upwards move to the $51k range.

Relevant BTC News

In recent news about bitcoin from around the world, this week, Lord Fusitu'a, a former member of Tonga's parliament and strong Bitcoin advocate, announced that the Kingdom of Tonga may adopt bitcoin as legal tender. Just a few months ago, El Salvador had passed a law deeming Bitcoin as a legal tender, and Tonga might soon follow suit, according to Lord Fusitu'a.
The once member of parliament answered in a series of tweets that the bill is likely to go to parliament in September/October and sent to the Palace Office for submission to His Majesty for Royal Assent. In the five-point plan Lord Fusitu'a explains that the bill is likely to be included in the following parliament session in June, as this is when the national budget is set.

In other news, interesting case studies have been made on Ukraine in favor of the adoption of Bitcoin. Known as a country with high inflation, on average 11.2% per year, and being characterized as being mostly unfree with the lowest scores in the investment and financial freedom sectors, many citizens have turned to Bitcoin. Bitcoin has been a great deflationary asset and due to its decentralised nature, it is emerging as a reality for the potential legalisation of Bitcoin by the Ukraine government. Whilst a timeline regarding this is still unclear, it doesn't seem unlikely that it could occur as early as next year.

DOGE/BUSD Market

After what seemed like a good week for Dogecoin's price last week, this week started with the meme coin dropping. With what seemed like a promising move, Doge regained the 20EMA level initially, and the 50EMA after a few days (on the daily chart). The price rised as high as $0.214, topping a 47% rise from previous lows.
DOGE/BUSD weekly candles chart with supports and resistance
DOGE/BUSD weekly candles chart with supports and resistance
This final spike in price was mainly due to a tweet from Elon Musk. On Friday, January 14, Musk tweeted "Tesla merch buyable with Dogecoin". Following his tweet, DOGE saw a 10% increase in price just in the moment following. According to recent comments Musk intends to keep DOGE around, which is certainly great news for the holders of the coin.
At the moment Doge is trading close to historical support levels and below the 20EMA and 50EMA (weekly). This is not a great price level, as if the current support of $0.17-$0.152 doesn't hold, its likely to see the coin dropping even further to the support level of $0.077. Whilst this is unlikely, it still remains a possibility until the price regains at least the 50EMA. The same can be said for other memecoins like Shiba, which similarly to Doge are maintaining a downward trend.

Dogecoin price prediction would suggest that Doge is likely to lateralise and see its price bounce several times on the lower support of $0.15, if it managed to hold above this level and makes an upward push regaining the 50EMA, at $0.18, it would be really bullish for its price and could see a further push towards $0.28 sooner than later.

Dogecoin news

Recent Dogecoin news saw Tesla Accepting Dogecoin Payments. In a tweet from Tesla CEO Elon Musk, the American car manufacturer owner announced: 'Tesla merch buyable with dogecoin.' This is positive news for the memecoin, and will give many the ability to spend their dogecoin, giving it an actual use case, in this instance, buying Tesla merch.
However, not everyone shared the same enthusiasm about Doge. There's this "get rich quick" idea that is in so much of the crypto community. DOGE and SHIB cemented that idea into people's heads, which is what many crypto enthusiasts have argued about Doge. However, with Doge having an actual use-case things might be changing and even some die hard crypto traders that for fundamental reasons have not liked Doge might change their mind.

SLP/BUSD Market

Smooth Love Potion (SLP) is a game token used primarily to feed the creation of digital pets called Axies in the hit NFT game, Axie Infinity. Smooth love potions price seems to have bottomed out over the last few days, after finding support at $0.018-0.01. It has moved sideways over this support level for the last few days, which could be a positive sign going forward.
SLP/BUSD daily candles chart with supports and resistance
SLP/BUSD daily candles chart with supports and resistance
Smooth love potion coin has really struggled over the last few months, after reaching an ATH in August. After launching earlier in May (2021), the coin dropped to prices lower than launch but quickly recovered printing ATH only three months later. However, after reaching the historic prices of as high as $0.4, the coin started a slow and gradual fall that saw prices go as low as $0.0172, or over 23x.

SLP price has struggled to create a lasting support, and everytime it seemed like it was doing so, it failed to hold the EMA levels. For example, between September and November, it started ranging between $0.06-0.09, regaining temporarily the 20EMA and the 50EMA. This level did not hold for long, as in December we saw prices fall even deeper to below half of their current price.

Smooth love potion price prediction would suggest that this coin could drop even further. With no significant support levels remaining, it's unclear how much further the coin could fall. It would be positive if it managed to maintain the current price level and regain the 20EMA and 50EMA, around $0.019. This would be an initial good sign that could gain momentum if prices push above the 100EMA at $0.021.

Relevant SLP news

Over the last few days many users have been mentioning Smooth Love Potion (SLP), seeing SLP trending on twitter and coinmarketcap. Whilst many took to Twitter to mock the coin and the chart, stating that it does not look promising, there has also been some positive news for the coin.
Axia Esports has started the second round of applications to receive grants in AXS. With over 7500 AXS to be allocated across 75+ events through June of this year. This is just the latest project from Axia to promote Esports and to bring a use case for blockchain and cryptocurrencies.
BTC/BUSD, DOGE/BUSD, and SLP/BUSD are available for trading on yanda.io dApp, together with hundreds of different market pairs.

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Author: Matteo Poole
info@yanda.io