2022 was a tough year for crypto investors. They witnessed a massive crypto market cap tumble from $2.2 trillion at the beginning of 2022, to $850 billion at the end of the year.
This was due to some high-profile bankruptcies that happened in 2022. First, the Terra ecosystem imploded with the collapse of LUNA and UST. This was followed by the failure of Three Arrows Capital. Those and other events on the crypto market triggered liquidity and managed to cause many damages in the industry.
Truth is, a bear market opens many opportunities for crypto investors. Those who stay away from the panic tend to benefit the most, when the trends turn.
And while the bear market seems like a great time to build your portfolio, it may be a mistake to buy the coins that have fallen, hoping they will recover at some point. Usually, the bull market offers a new set of leaders, and the ones that are resilient during the fall, manage to recover quickly.
Here are 5 cryptocurrencies that show good promise for 2023
It is barely a surprise that the cryptocurrency market won’t turn around, until BTC does. As you probably know, Bitcoin has been in a strong downtrend for the past months, but it has shown a positive relative strength index, and this is a sign that the bearish momentum may be weakening.
Ether has also been in a strong downtrend, but at least it is finding support near the psychological level of $1000. A sporadic buying by the bulls indicated the repeated rallies to the 20-week EMA.
If bulls push and sustain a price above the 20-week EMA, bears may short positions and as a result we can witness a rally to the resistance at $2,030.
The ETH/USD pair has been trading inside a descending channel pattern, but with the 20-day EMA flattening out, the RSI is near the midpoint.
There are many cryptocurrencies threatened to break below their summer low, but MATIC has been an outperformer, trying to form a base above this low.
There have been some encouraging signs that the bears won’t let the price break below $0.69.
With a flattened 20-week EMA and an RSI near the center, there is an indicator for a balance between supply and demand. A break above $1.05 will be the first sign of strengthening, that could increase the likelihood of a retest of $1.30 and this could be a sign for the start of a new uptrend.
TON has been pulling higher since the June low of $0.74. A sign of strength was the higher low traders put in October.
The TON/USDT pair has reached an overhead resistance zone between $2.15 and $2.50. If the bears strive to stop the march from the bulls, the pair can drop to its 20-week EMA of $1.61, and then to $1.18.
However, the moving averages and the RSI in the overbought zone indicate an upside path.
Quant went from $40 to $228 in only a few months. This rally is an indicator for strong demand from traders.
All the volatile moves from the past weeks, show a possibility for the QNT/USDT pair could enter a consolidation phase where the bears and the bulls battle it out for supremacy. The boundaries for the range could be between $228 and $87.
A defined range offers an opportunity for traders to book profits near the resistance.
As we know, the crypto market is highly volatile, and it is possible that we’ll witness some big surprises in the future months.
Although cryptocurrencies like Bitcoin, Ether, and others seem to bring some great investing opportunities, keep in mind the volatility of the market and do not follow random investment advice. If you intend to make a crypto investment, do good research and never invest more than you are willing to lose.
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