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The first major correction on the market has begun since the recovery started in January. The massive drop in open interest on the market suggests that we will see a deleveraging and drop in volatility on the market, but some assets may still have one last ride.
Dogecoin being suppressed
A descending triangle pattern is a bearish technical pattern that is formed by a horizontal support level and a downward-slanting resistance level. In this case, the upper border of the pattern acts as a guideline for the asset and may continuously push it down until either a breakout or a breakdown occurs.
On Feb. 4, Dogecoin failed to break through the upper border of the pattern and has reversed down since then. The descending triangle pattern often signals a continuation of the current trend, which in this case is bearish. If the price of Dogecoin falls below the support level, it would confirm the pattern and may result in a significant decline.
Despite its popularity and widespread adoption, Dogecoin is still a highly speculative and volatile asset. Its value is largely driven by market sentiment and hype, rather than any underlying fundamentals. This makes it vulnerable to rapid price swings, both to the upside and the downside.
The only fuel for DOGE's growth recently was Elon Musk's desire to implement crypto payments on Twitter, which would have pushed the adoption of the meme asset further.
Fantom not riding AI wave
Recently, the crypto market saw a 5% drop in the value of Fantom (FTM) after founder and lead developer Andre Cronje made a controversial statement regarding the mix of blockchain and artificial intelligence. In a tweet, Cronje stated that it is not possible for blockchain and AI to coexist, as the decentralized nature of blockchain technology makes it too slow for AI to function effectively.
This statement sparked a heated debate in the crypto community, as many believe that the integration of AI and blockchain has the potential to revolutionize various industries. On the other hand, some agree with Cronje's view that the slow and limited nature of blockchain technology does indeed limit the potential for AI to operate at full capacity.
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Despite the drop in value, it is worth noting that FTM is still one of the leading cryptocurrencies on the market and has a strong community of supporters and developers. The technology behind Fantom is designed to improve scalability and efficiency in blockchain transactions, which has led to its widespread adoption in various industries, including DeFi.
Shiba Inu's market cap rise
Shiba Inu (SHIB) is on the rise and is poised to take the 12th spot on the cryptocurrency market by market capitalization. The meme token has been showing a strong performance since the start of the cryptocurrency market recovery in January and has gained over 70% in value, making it one of the strongest-performing assets on the market.
If Shiba Inu continues its upward trend, it could potentially beat Polkadot (DOT) and secure its place as the 12th largest cryptocurrency by market capitalization. This would be a significant achievement for the meme token, considering the current market competition and the size of the players it is competing against.