Altcoin Watch: Solana (SOL) and Avalanche (AVAX) Show Bullish Signals
The global market cap of cryptocurrencies has increased by 3.66 percent on Tuesday to reach over $1.3 trillion. Bitcoin has also gained ground, rising by almost 5% to hit a new high above $32,000. In the last 24 hours, digital currency’s price has also increased by around 4.64 percent.
SOL is Rising
The total crypto market volume over the last 24 hours is $96.09B, making a 34.74% increase—all these signals to the recovering crypto market. Meanwhile, two Ethereum killers are on the brink of price rallies, Avalanche (AVAX) and Solana (SOL).
Pentoshi, a pseudonymous analyst and crypto pundit, stated on Twitter that he believes that Solana (SOL) is about to go through a significant change in momentum.
The Solana price has risen by 3.59 percent in the last 24 hours. Over the past seven days, the SOL has decreased by 5.1 percent. Currently, it is ranked as the 9th biggest cryptocurrency asset in terms of market cap.
The price of Solana is currently trading above its 20-day and 100-day moving averages. The positive momentum exhibited by the indicator can be seen in the histogram, which also shows a significant increase in bullish momentum. However, the lighter shade of the histogram suggests that the price might be headed for a potential reversal.
In the Solana price analysis, the five-day net movement is low as the EMAs are trading close to the mean position. As the bullish rally continues, the 12-EMA moves higher than the 26-EMA, corresponding to the recent price action.
Over the past three days, the RSI has traded in the neutral zone. The RSI is currently above the mean line at 50.00 and close to the 60.00 index unit level. Despite continued buying activity, the indicator is near the oversold region. Even though the RSI is still rising, its current position indicates that the crypto can achieve more upward movement before it requires a correction.
AVAX is Showing a Bullish Momentum
According to Pentoshi, AVAX is a worthy addition to the discussion due to its potential to reach the $40 level. He noted that the coin’s ability to sustain above its $25 support level could boost its target chances.
The AVAX token is currently trading at $26.43. The crypto had lost value last week, going from around $22.13 to about $21.63.
The strength of the movement was attributed to the rise in the Relative Strength Index (RSI), which was able to stay above the 50 line. This technical indicator also showed that momentum is still strong above 60.
The OBV has also been rising in the past couple of days. It suggests that the demand for AVAX is still strong and could trigger a higher push. The two orange lines on the chart are essential to support levels that buyers are looking to break.
The higher timeframe trend for the AVAX token remained negative. However, it did manage to bounce back from its initial support level. Before a potential reversal, the coin still has a lot of room to move higher.
The lower time frames have shown a change in the outlook for the coin. A move above $28 and a support level test could lead to long positions targeting the $35 and $36 resistances.
The Rest of the Market
According to Pentoshi, the crypto market could rally back to its previous levels due to the improving sentiment. He also believes that the market will go from being utterly bearish to becoming very positive once this happens.
He also believes that investors and traders will soon start to see a turnaround in their positions. He predicts that the market will eventually go from being labeled a dead bear to celebrating the start of the Alt season. However, he also believes that most altcoins will never be able to reach their record-breaking prices.
Despite the recent decline, the price of Ethereum is still supported above the key resistance level of $1,850. It has allowed the bulls to push the price above the resistance zone of $1,920. The price of Ethereum managed to break above the resistance level of $1,940 and then spiked higher to trade as high as $2,010 during the day. It is a strong indication that the bulls are still controlling the market as it hovers around the $2K mark.
