While Bitcoin (BTC) has reached the highest levels of the last 5 months, the largest altcoin projects from the Binance list have reached the ideal opportunity zones. While the market is bullish, let’s take a look at which altcoins analysts are following closely.
Polkadot (DOT) may offer buying opportunity as altcoin market rises
Polkadot price broke the $5 resistance during the week. DOT has gained 3.8% in the last 24 hours. Indicating a strong rally is a rapid climb to the $6.20 resistance after $5.40. On the other hand, DOT’s daily chart points to an impending decline, which means short opportunities may be presented. Currently, DOT is trading at 89% off its all-time high in 2021.
At the time of writing, the DOT has recorded a bullish retracement of its purchasing power. On that note, the price of DOT was above the 20-Simple Moving Average line, indicating that buyers are increasing price momentum in the market. The altcoin was also above the 50-SMA (yellow) line. However, the 50-SMA line has crossed above the 20-SMA line, which means a death cross. A death cross means an incoming drop in value. This reading corresponds to traders finding a short position.
Solana (SOL), the best performer in the altcoin market
Solana survived the slight recession during the week, even as the crypto market was bearish. SOL, which was in an uptrend last week, has seen an increase of 28.44% during this time. This increase may be due to combined economic factors and the growing utility of Solana among crypto users. The Solana network is gaining more attention from growing crypto awareness and adoption among individual and institutional investors. The network has created excitement among its online community by offering plans for 2023.
The SOL network provides developers access and a framework for building DApps on Blockchains. For example, the crypto wallet Phantom is hosted on Solana. The wallet supports decentralized finance, staking and NFT transactions for Solana users. cryptocoin.com As we have reported, despite the crisis in November, Vitalik was able to receive praise from Buterin.
On the technical side, SOL price is recovering from yesterday’s slight pullback and is trading at $21.28. Support levels are $19.60, $20.09 and $20.75, while resistance levels are $21.90, $22.40 and $23.05. The SOL is trading below the 50-day Simple Moving Average (SMA) and the 200-day SMA on the weekly charts. These signs point to a downtrend or slight reversal in the upcoming SOL price.
According to analyst Jammy Hunts, SOL may decline after this momentum and touch the $19.69 support. The next rally is likely to surpass the initial resistance level at $21.90, in the coming days.
What does on-chain data say about Chainlink?
Despite the positive on-chain data, LINK may not be one of the best performers in the crypto market in the short term. The growth in altcoin’s market capitalization can be attributed to the vital role oracles play in the cryptocurrency market. Oracles like Chainlink facilitate the integration of external data into smart contracts, providing access to real-world information, including asset prices, exchange rates, and other relevant data.
Considering the various advantages Chainlink offers, it is not surprising that the demand for the altcoin is increasing. According to the latest analysis by Santiment, there has been a notable increase in altcoin accumulation by whales. On January 18, an analytics firm published a report stating that more than 460 addresses have a minimum of 100,000 LINK. These data show that despite the decline in value in 2022, a significant number of large investors continue to be interested in the token and have confidence in Chainlink’s potential.
Unfortunately for LINK investors, the savings are not accompanied by the use of Chainlink. This is because daily active addresses have experienced a 56% drop over the past few days. While this may indicate that investors want to accumulate LINK in the medium to long term, it can also be a negative sign. Since LINK is used to pay for Chainlink’s decentralized oracles, it could be an example of low demand for the services of the decentralized financial network if it does not have an on-chain activity.
Meanwhile, it is important to note that fluctuations in LINK’s demand and prices are a normal phenomenon in the market. In addition, Chainlink continues to forge strategic partnerships, be actively involved in social media and work towards improving its platform. All in all, in the short term, Chainlink’s move is likely to align with overall market trends.
This development could highlight Cardano in the altcoin market
The cryptocurrency market is closely watching Cardano’s (ADA) performance as altcoins are considered a strong contender in the upcoming bullish market cycle. One of the key features of Cardano (ADA) is the total supply of 45 billion tokens. This is significantly higher than Bitcoin, which has a maximum supply of 21 million, and has raised concerns among investors about the coin’s price increase potential. The possibility of token burning has been discussed as a way to address this issue, but it is not yet clear whether it will have a significant impact on the value of the coin.
It’s also worth noting that Cardano (ADA) is currently down 89% from its ATH. While the token burn could potentially have a positive impact on the altcoin’s price, especially given its current market performance, it is unlikely to be enough to return Cardano to its previous peak of $3.10.
On the other hand, it is important to note that its founder, Charles Hoskinson, emphasized that Cardano’s governance model was designed to allow ADA investors to make changes to the protocol, such as adjusting the inflation rate. In the event that there is a significant drop in the token generation rate and there is not enough trading volume to generate fees, it is possible for the community to vote on changes in monetary policy.
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