The cryptocurrency market has experienced a significant recovery in 2023, with top cryptocurrency Bitcoin leading the market with a 160% year-to-date (YTD) gain. This rising tide has seen many altcoin projects rise as the bull market continues to rise, with many achieving significant gains. Let’s take a closer look at the biggest price recoveries of 2023.
Altcoin Solana made a big comeback
Solana has made the biggest comeback of 2023, up nearly 1,215% from the cycle low of $8.27 in December 2022. Additionally, it is up 485% compared to Bitcoin from its cycle low of 0.00004952 BTC on June 5. SOL price fell 95% in 2022, making it one of the biggest losses of that year, falling below $10 due primarily to its exposure to FTX. However, Solana’s rise in 2023 can be attributed to FTX’s resilience in the face of bankruptcy asset sales, significant growth in decentralized application usage, increased market demand and network efficiency, and better network stability.
Solana’s emphasis on mobile accessibility and efficient transaction capabilities has also attracted new users and developers, strengthening its market position and adoption. However, according to analyst Yashu Gola, Solana price chart technical data shows a bearish trend for early 2024. Notably, SOL’s weekly relative strength index (RSI) remains above 70, increasing the potential for a pullback in the coming weeks. Additionally, the SOL selling scenario is also bullish as SOL is attempting to close above the 0.5 Fibonacci retracement line near $132. However, SOL may continue its uptrend in the second half of the year after testing the ascending trend line support. Then, a climb to the previous record high of $265 by the end of the year could be on the table.
TRON increased by 1,200 percent
The market experienced a decline of over 98% during the 2018-2020 bear cycle. However, TRX/USD is up over 1,270% since its low near $0.0076 in March 2020, including a 100% rally in 2023. Tron’s price increases coincide with its strong performance in the decentralized finance (DeFi) sector. Notably, the total value locked (TVL) in the Tron ecosystem has increased from approximately 30 million TRX in April 2020 to over 76 billion TRX (~$8 billion) by December 2023. In addition, Tron has engaged in token burning activities, reducing its asset supply to counter the increasing TVL, which is expected to push the price up.
Tron has also become the largest blockchain for stablecoin Tether. Today, more than 50% of all USDT, approximately $49 billion, resides on the Tron Blockchain. On broader timeframe charts, the altcoin appears to be reaching the top of the giant triangle price range, according to Yashu Gola. Therefore, the first quarter of 2024 is likely to witness TRX price fluctuating between the upper trendline (~$0.108) and the lower trendline (~$0.095) of the triangle. But like all cryptocurrencies, Tron’s price trends for the remainder of 2024 will largely depend on broader factors such as spot Bitcoin exchange-traded fund approval, Bitcoin’s halving in April, and the global economy in general.
Avalanche made 370 percent
On the other hand, the price of altcoin AVAX is up almost 370% as measured from the cycle low of $8.65 in September 2023. This recovery follows the 94.25% crash, one of the largest in the bear market. Interestingly, Avalanche’s recovery occurred in the second half of 2023, with approximately 19 million AVAX tokens unlocked. Rising prices indicate that markets are readily absorbing additional supply. However, Avalanche’s network metrics show underlying demand is weak. For example, TVL in the Avalanche ecosystem dropped to approximately 23 million AVAX in December, compared to approximately 55 million AVAX in September, when the price rise began.
The weakness in AVAX’s uptrend is seen in the increasing difference between its rising prices and decreasing volumes. An increase in price without significant trading volume indicates that there is no strong belief behind the price movement. This may mean that fewer traders are participating in the market, and those who do not may not have full confidence in the sustainability of the price increase. As of December 29, the price of AVAX stood at resistance near the 0.618 Fib line at $50.50. A correction towards the next Fib line at $29.50 already appears to be in progress, which could occur in the first quarter of 2024.
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