The month of January has ended with very good results in the crypto market, as we can see in the total market capitalisation chart, which has generated an increase of +36%, returning to the “barrier” of 1T-1.2T, which acts as a resistance.
This situation has been reflected across a large part of the market, but on a different scale for each token. A very similar scenario to the total capitalisation chart is $BTC, which is also very close to the $25k resistance zone.
Although this week has seen a decrease in the dominance of BTC, the situation on the $BTC chart is very similar to what was discussed last week with a price close to the key area of $25k.
This resistance is causing a slowdown in the price progression, which together with the bearish divergences that are being detected in the 4h chart, suggest that after this phase of accumulation we can expect a consolidation phase that will cause bearish movements from the resistance, in search of $22k or even $18k in a less optimistic scenario.
Regarding the rest of the market, the tokens that have grown the most this month are some of those already mentioned in previous weeks, such as $GALA (+236%), $FTM (+225%) and $FET (+221%), who are on the podium of this monthly ranking. Here are the links to the posts where I commented on these tokens:
$GALA and $FTM
$FET
In addition to the top 3, tokens such as $SOL or $MANA stand out in this ranking, which after the poor results of 2022, have started the year with a growth of more than +150%. Although this week I would like to focus on $ONE. The @Harmony token is in 5th place in our ranking with an increase of +178% so far this year. Climbing several places after the +20% it has registered this week.
$ONE came from the double top figure shown in the chart, which led it to break the $0.01 support at the end of the year. After the beginning of 2023 the situation has improved a lot, generating a bullish momentum that returns the price to the upper zone of the sideways channel that it outlined in the second half of 2022.
This zone of $0.037-$0.04 is the resistance zone to beat to be able to propose a scenario of change of trend, while this zone is not overcome, the downtrend will remain in force and can cause rejections from this price zone.
However, if we zoom in on the chart, it is striking that the current movement is being triggered by a progressive increase in trading volume, which could lead to new highs in the short term, although we could see rejections later if the volume of buying decreases.
This situation obliges us to keep an eye on the price evolution in the short term. If we start to detect a sideways movement from the highs on the intraday chart, this could be the start of a rejection movement.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows analysis and investment tools, and how they help us in our operations when making decisions.