5 Most Popular Cryptos of the Week: DOGE, SOL, ADA, SFM, CEL

Key Points 

  • Cryptocurrency markets were battered this week as traders priced in faster Fed tightening and a US recession.  
  • Markets have mostly been going sideways in recent days, despite the Fed delivering a 75 bps rate hike on Wednesday.  
  • Five of the most popular cryptocurrencies were DOGE, SOL, ADA, SFM and CEL.  

Cryptocurrency markets were battered this week, with most of the week’s losses coming on Monday as investors reacted to last Friday’s hot US CPI data and record weak US Consumer Sentiment data by pricing in a more aggressive US Federal Reserve tightening cycle at the same time as rising US recession risk. The Fed delivered on these expectations for an accelerated tightening cycle on Wednesday by lifting interest rates by 75 bps (as recently as last week a 50 bps move had been expected).  

Cryptocurrency markets, which had already shed about $300 billion in market cap between last Friday and this Monday, took the Fed policy announcement in their stride. As of Friday, total cryptocurrency market cap is around $890 billion, roughly in line with its pre-Fed announcement levels.  

But the crypto bears remain hopeful that more downside might be in store in the weeks ahead. The Fed signalled that it could hike rates by another 75 bps at its next meeting and that it expects rates to end this year in the mid-3.0% range, before moving close to 4.0% during 2023.  

Powell’s tone on the need to address inflation, even if that means a (slightly) weaker labour market and slower growth sends a message that the Fed will not stop tightening even if the US economy does slide into recession (as many now expect). The only thing stopping the hawkish Fed will be inflation coming back under control.  

That is all very hawkish stuff and the knowledge that the Fed isn’t going to be there to save the day when growth weakens could weigh heavily on risk assets such as US equities and crypto in the weeks ahead. For now, total crypto market cap is likely to remain within the $840-$960ish billion range it established this week, as trade consolidates after recent big bearish moves.  

In terms of the largest cryptocurrencies by market cap, Bitcoin is currently trading just above $21,000, well within the $20,000-$23,000 range established over the past few days, but way down from its levels above $30,000 as recently as the start of last week.  

The psychologically important $20,000 level hold for now, but any break below could see BTC/USD quickly test its 2017 highs just below $20,000 and open the door to a run lower towards the 2019 highs under $14,000.  

BTC/USD Weekly Chart. Source: FX Empire

Ethereum, meanwhile, is consolidating close to $1,100, having at one point dipped to just above the critical $1,000 level. ETH/USD is looking to establish a footing within the $1,000-$1,270ish ranges it has established over the past few days, after its swift tumble from the $1,800 area between last Friday and this Monday.  

ETH/USD Weekly Chart. Source: FX Empire

Outside of the top two coins, here are five of this week’s most popular cryptocurrencies.  

Dogecoin (DOGE) 

Interest in the internet’s favourite dog-inspired memecoin has spiked in the past two days, after the news broke on Thursday that Tesla and SpaceX CEO Elon Musk is being sued for using his “pedestal as the world’s richest man operate and manipulate the Dogecoin pyramid scheme for profit, exposure and amusement”. Keith Johnson, the man suing Musk, alleges he was “defrauded out of money”. He is reportedly attempting to sue for $258 billion and wants to represent all of those who have lost money investing in Dogecoin since 2019.  

According to crypto social intelligence website LunarCrush, social engagements regarding Dogecoin have spiked in the last two days from around 100-150 million prior to the news breaking to nearly 900 million alone on Friday. But the spike in buzz around Dogecoin hasn’t helped its price. DOGE/USD was last trading in the $0.0575 area, around the middle of this week’s $0.050-0.063ish range. Dogecoin currently trades around 92% below its record peaks printed in May 2021 at just above $0.76.  

DOGE/USD Daily Chart. Source: FX Empire

Solana (SOL) 

According to LunarCrush, Solana has consistently clocked about 200 million social engagements per day this week. The cryptocurrency is one of the few to be trading in the green on the week. With SOL/USD currently changing hands around $31.50, it stands to gain just over 3.0% on the week and is near the middle of this week’s approximate $26-36ish range.  

However, its failure on Thursday to break above resistance around $36.00 in the form of May and early June lows is a bearish sign in the short-term, technicians think, as well as its continued failure to test its 21-Day Moving Average (near $38.00). Indeed, selling as SOL/USD approaches its 21DMA has proven to be a highly profitable strategy going all the way back to the middle of April.  

SOL/USD Daily Chart. Source: FX Empire

Cardano (ADA) 

Cardano was the next most popular cryptocurrency this week, having clocked around 100 million social engagements per day this week, as per LunarCrush data. Like Solana, ADA/USD looks on course to end the week about 1.5% higher close to the $0.50 level, around the middle of this week’s $0.43-0.55ish range.  

Cardano’s failure to get back above its 21DMA (at $0.55) this week suggests that the positive momentum associated with Fear Of Missing Out ahead of the blockchain’s highly anticipated upgrade later this month (called the Vasil hardfork) has run its course. However, for now, support in the form of the recent this week’s and late May lows around $0.43 should shield ADA/USD from a near-term test of its sub-$0.40 annual lows printed at the start of May.  

ADA/USD Daily Chart. Source: FX Empire

SafeMoon (SFM) 

Social engagement relating to SafeMoon has jumped on Friday to over 30 million, LunarCrush data shows, up from earlier weekly levels in the 15 million range. The jump in interest has coincided with a more than 35% intra-day spike in SFM/USD to above $0.006 from earlier weekly levels under $0.0005. That still leaves it about 80% below earlier annual highs at $0.0032, as the SafeMoon continues to face accusations of being an elaborate rug-pull scheme.  

Celsius (CEL)  

In wake of crypto lending/borrowing service provider the Celsius Network’s decision to halt investor withdrawals on Sunday amid what it has called “difficult market conditions”, the platform’s CEL token has seen spectacular volatility. Amid speculation of the Celsius Network’s insolvency, CEl/USD swung as low as $0.09 this week and then back as high as $2.57 within the space of 48 hours.  

At present, the cryptocurrency is trading around $0.60, with its 21DMA (at $0.63) offering resistance over the last two sessions. In the absence of clarity surrounding Celsius’ solvency, the outlook for a rebound is slim.