The cryptocurrency market in September 2022 showed a bearish performance to end the third quarter of the year. In this bear market, crypto analyst Ajibola Akamo takes a look at 5 cryptocurrencies that investors should watch out for in October 2022.
The leading cryptocurrency Bitcoin (BTC) is in the first place.
There are strong indications of further price drops ahead for the leading cryptocurrency. So it hasn’t gotten out of control yet. Data from Glassnode, along with the report from CryptoQuant contributor Edris, suggests that Bitcoin will likely drop as low as $12,000 soon.
In its new report, titled “The Great Detox,” Glassnode explains that due to the current price movement we are seeing in the market, long-term holders (LTHs) are putting pressure on market participants, up to miners, to see a further drop in price, which could force a sale. Therefore, Glassnode predicts that Bitcoin will drop as low as $12,000 before seeing any meaningful bullish price action.
Bitcoin showed remarkable strength against the rising dollar index (DXY). However, the strength of the US Dollar continues with the evaporation in global liquidity. BTC, on the other hand, is still at risk of falling in price. Bitcoin’s price has remained range-bound so far this week. The leading cryptocurrency traded at lows of $18,309, with a high of $19,639. However, price action is barely holding on to the lows of the consolidation range set in July.
Second place is Ethereum rival Cardano (ADA)
Cardano is one of the largest Blockchains to successfully use the PoS consensus mechanism. cryptocoin.com As you follow from , the much larger Ethereum has also moved to PoS. However, this transition will only happen gradually. After several months of delay, Cardano Vasil Hard Fork is finally live. This happened on September 22, 2022. It also brought “significant performance and capability” improvements to Blockchain. This is the most significant update since the smart contract functionality was added last September.
Blockchain company Input Output Hong Kong (IOHK) previously stated that the major upgrades brought by the fork are block forwarding without full verification, allowing for faster block creation. For increased efficiency, upgrades to Plutus smart contracts also allow decentralized applications to be deployed and run at lower costs.
The second cryptocurrency Ethereum (ETH) is also on the list
Leading altcoin Ethereum is home to a wealth of financial products, innovations and automation with varying degrees of decentralization. Ethereum remains the largest smart contract platform. Ethereum Merge became one of the most groundbreaking and talked about events in its ecosystem in 2022. The leading altcoin thus switched to the PoS consensus mechanism.
As a result of Ethereum’s network upgrade, the network now needs 99.95% less energy to maintain its integrity. The leading cryptocurrency Bitcoin, on the other hand, uses PoW, which requires a significant amount of energy. Even though the merge did happen, ETH continued to drop towards the end of September after the event. This refers to the “buy the rumor, sell the realization” trade.
Another Ethereum competitor is Solana (SOL)
Solana is working on a PoS similar to Cardano’s Blockchain. She is also an Ethereum competitor. It is unique because the platform uses a Proof-of-History (PoH) consensus combined with the underlying PoS consensus of Blockchain. Thus, it is trying to improve its scalability.
According to data from Messari, the average number of daily transactions on Solana Blockchain decreased by 17.6% in Q2 compared to the previous quarter. Meanwhile, he is in trouble due to recurring network outages. Therefore, Solana’s revenue decreased by 44.4% quarter-on-quarter. According to James Trautman, a researcher at Messari, poor network performance is reducing network usage, as seen in 2021 and throughout Q1 and Q2. This reduces the ongoing revenue stream of the network. According to the researcher, if Solana continues to experience sustained poor performance for a significant period of time, an emerging drag in core usage is likely to accelerate volatility and drag network value.
Latest cryptocurrency Ripple (XRP)
XRP is the native token of XRP Ledger. It is used as currency for trading on the platform and other supported platforms. Ripple is still handling the case with the United States Securities and Exchange Commission (SEC). In December 2020, the SEC accused Ripple of allegations that its executives had sold $1.3 billion worth of XRP in an unregistered security offering. Ripple disputed the allegations, saying that XRP should not be considered a security.
The case has been going on for almost two years. With the latest news, Ripple seems to be approaching a victorious conclusion. This is because last week the SEC and Ripple filed for what is known as the ‘summary decision’. A summary judgment is a legal process in which the court makes a decision based on the facts presented without a warrant, raising the expectation of a final decision before the end of the year. Traders are bidding favorably on this news. According to defense attorney James K. Filan, the conclusions of the summary judgment will be based on the facts provided. He also said that a decision on whether XRP is a security will come by mid-December.
