Is Solana Making A Comeback? | And More in This Weeks Crypto Update.
- Is Solana Making A Comeback?
- Zilliqa Bullish Divergence
- Is AVAX making a 250% comeback?
- MANA is starting to recover.
Is Solana Making A Comeback?
Is Solana making a comeback now after a severe bear run? Let’s find out!
The Details: Solana has lost 96% of its value since its all-time high. However, it has recently made its biggest comeback in this bear market.
Solana Rally Potential
The coin is now up about 100% from its most recent bottom. The second biggest comeback the coin had in this bear market came between February and April 2022, when it recovered about 90% of its value. The February-March comeback looks much more prominent on the chart than the current one because we are using a regular chart, and candles, where the price has a more extensive range, seem more evident than smaller ones.
A recovery of 90%-100% is pretty normal in the cryptocurrency space, especially when considering that a coin lost more than 95% of its value. However, if the rally continues, then we might be at the start of a new uptrend. If the rally continues, the next resistance is at $27, which is around 70% higher than the current price. The next resistance after that stands at $40, which is 145% from the current price, offering very good returns if it pans out.
Looking Ahead: Since Solana’s price is so low from its all-time high, there is not a lot of risk of it falling much further. Usually, 95% down from the all-time high is the absolute bottom for altcoins, and Solana has achieved this already. However, the only risk remains if Solana crashes completely for fundamental reasons like LUNA or FTT.
Zilliqa Bullish Divergence
Zilliqa (ZIL) appears to be starting a strong bull run. While generally, altcoins follow Bitcoin, they don’t always follow Bitcoin to the letter.
The details: Sometimes, Bitcoin may make an all-time high, but the altcoins may not be anywhere near their all-time high. However, the opposite can happen as well, where one or more altcoins experience a huge bull run without Bitcoin. This may be the case with ZIL currently.
Bullish Divergence
Zilliqa has experienced such a bullish divergence before, in April 2022. At that time, Bitcoin reached $47,000, which is way below its all-time high of $70,000. However, ZIL came very close to its all-time high, being only 9% below it.
Overall, Bitcoin’s rally was about 45% from the low of the rally to the high, while on the other hand, ZIL made a 600% rally. While this is a drastic difference, it does not mean that ZIL’s current rally will also consist of 600% profit; this depends on many factors. However, it will likely be significantly bigger than Bitcoin’s rally.
Currently, Bitcoin is still below its December rally, while ZIL is more than 15% above it, showcasing that the bullish divergence has commenced. If ZIL continues its rally, the first Resistance level will comes around $0.03 while the second Resistance level comes around $0.05. These levels are 15% and 90% away from the current price. The second resistance level will therefore be an excellent place to take out some of your profits.
Bottom Line: ZIL is currently experiencing a bullish divergence by increasing faster than Bitcoin. However, we don’t know how strong the rally will be; therefore, exiting at multiple points might be the best answer.
AVAX Making A 250% Comeback?
After an intense bear market, AVAX appears to be recovering, and 250% higher from the current level seems to be the likely target. Let’s find out why!
The Details: AVAX lost 92% in this bear market from its all-time high to its low 12 days ago. Since then, it appears to have made a V-shaped recovery and might be on its way to hit $55. Why $55 dollars you may ask? That is because $55 is an important resistance level, based on where the coin bounced in the past. Additionally, it is in the middle point of the bear market, and usually where a bear market returns to sooner or later.
Why Do We Have a Bull Run Now?
AVAX was in a descending trendline since August 2022. However, that changed when it made a breakout yesterday! The breakout was violent and AVAX gained almost 25% in a single day. This suggests that there is strong momentum behind the breakout and it is likely to continue.
The 30 exponential moving average (EMA) acts as a mobile support and resistance and has been pretty accurate since the coin came into existence and especially in the bear market. Once AVAX closes above it as it did now, it is likely to stay above it and acts a support for some time to come.
The first resistance level in this renewed bull run is $30. This level represents the high of August 2022, when the descending channel first came into existence. This level is still around 100% higher than the current price point, making a purchase of the coin, a potentially worthy endeavor.
Looking Ahead: When Bitcoin will have its rally this year, as we have pointed out multiple times, we will likely see AVAX rise even more as well, likely to $55 which is 250% higher than the current price.
MANA Starts Recovering
After losing most of its value like most altcoins, Decentraland (MANA) appears to be recovering. If MANA recovers to its all-time high, it will have to increase by more than 10 times, making an investment of $1,000 worth more than $10,000. Let’s see what is currently hindering a renewed bull run, and what is helping it!
Bull Run Hindrance
There are two main factors hindering the current bull run:
The first is that MANA is currently caught in a Descending trendline its all-time high in November 2021. We need to break this trendline before a bull run may commence. We have currently tested it 3 times without breaking it. However, the price has not come anywhere near it since November 2022.
Another hindrance to a renewed bull run is the current resistance at $0.42. This resistance was first created when MANA recovered from a crash back in June 2021. It also recently held as a resistance in December 2022.
Factors Calling for a Bull Run
There are a number of factors calling for a renewed bull run soon:
1. Bitcoin is due for a bull run this year and as we all know, altcoins tend to follow Bitcoin.
2. The MACD turned bullish. The MACD on the daily chart has so far given pretty accurate signals for MANA, and it has sent a bullish signal on December 25th.
3. Decentraland has already lost 95% at its lowest point, which is usually the bottom for altcoins.
4. The recovery has been pretty aggressive since hitting the low of $0.2840.
Looking Ahead: MANA sold off aggressively with the rest of the market, as a result it has the potential to recover more than 1,000% to its all-time high. While there are two factors currently hindering the bull run, there are a lot more calling for a renewed bull run. Therefore, it is likely that we will see a renewed bull run this year (probably not to the all-time high though).
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