Research Summary
The report provides a comprehensive analysis of the cryptocurrency market for the week of January 20. It covers the performance of major cryptocurrencies, including Bitcoin and Ethereum, and discusses the market conditions, new coin launches, and the performance of various altcoins. The report also highlights the impact of news on the market and provides insights into the performance of NFT collections.
Key Takeaways
Market Conditions and Cryptocurrency Performance
- Bitcoin and Ethereum Performance: The report notes that the market has been mostly red, with Bitcoin and Ethereum slightly down. The author predicts that the market will continue to chop for a while and is likely to break down from the current range.
- Altcoin Performance: Altcoins have suffered more than Bitcoin and Ethereum. The report highlights that ETH beta coins have been the most disappointing category this week, with several coins showing negative performance.
New Coin Launches
- Manta Network: The report discusses the launch of $MANTA, the token of the Manta Network L2 on Ethereum. The author opened a long position with an average entry around $2.16.
- Ondo Finance: $ONDO, the governance token of the Ondo Finance protocol, also launched this week. The author bought a bag of $ONDO, predicting that it could push way higher.
- Satoshi VM: The report also mentions the launch of $SAVM, the token of the Satoshi VM, a Bitcoin ZK-rollup L2. However, the author did not buy $SAVM due to negative sentiment around the project.
NFT Collections Performance
- Pudgy Penguins: The report highlights that Pudgy Penguins has been the best-performing NFT collection this week, with a significant increase in its floor price.
- Other Collections: Other NFT collections such as BAYC, MAYC, DeGods, Milady, MoonBirds, CloneX, Sappy Seals, Doodles, and Kanpai Pandas also saw their floor prices go up this week.
Impact of News on the Market
- News Retracement: The report notes that news candles get retraced very quickly, indicating a PvP market. It cites the example of Conflux announcing the launch of an EVM-compatible Bitcoin Layer 2, which caused a +20% pump in 30 minutes but was completely retraced.
Actionable Insights
- Monitor Market Conditions: Given the current market conditions, it may be beneficial to monitor the market closely and adjust trading strategies accordingly. The report suggests taking fewer trades, sizing smaller, and spending less time staring at charts.
- Consider New Coin Launches: New coin launches such as $MANTA and $ONDO could provide potential opportunities. However, it’s crucial to conduct thorough research and consider the market sentiment before making any decisions.
- Explore NFT Collections: The report suggests that NFT collections are showing signs of life again, with several collections seeing their floor prices go up. This could be an area to explore for potential opportunities.
- Be Cautious with News-Driven Trades: The report highlights that news candles get retraced very quickly in the current market conditions. Therefore, it may be wise to be cautious with news-driven trades.
