•Solana [SOL] swiftly rose from $20 to $25 on Friday, 20 January, however, a crucial short-term supply zone is blocking its upward price action.
•Fed watchers expect a dovish announcement from next week’s FOMC meeting. If their bets are confirmed, the markets could be triggered positively, tipping Bitcoin [BTC] and the rest of the altcoins for another round of price rallies.
•The Relative Strength Index (RSI) and On Balance Volume (OBV) indicate a genuine demand and rising buying pressure. If the trend is sustained, SOL could bypass the supply zone and move near the supply zone’s lower boundary of $24.60.
Solana (SOL) experienced a swift surge in its price on Friday, 20th January 2021, shooting up from $20 to $25. However, the price has been blocked by a crucial short-term supply zone and the digital asset is now trading at $24.10. Investors are keeping an eye out for the upcoming Federal Open Market Committee (FOMC) meeting next week, as Fed watchers expect a dovish announcement. If this prediction is proven correct, the markets could be triggered positively and could result in another round of price rallies for Bitcoin (BTC) and other altcoins such as SOL.
Analyzing the three-hour chart for SOL/USDT on TradingView, the Relative Strength Index (RSI) is indicating a neutral structure with a reading of 49 and hovering near the mid-level of 50. Despite this, the RSI has experienced a slight increase, accompanied by a rise in On Balance Volume (OBV), which is a sign of genuine demand and a rise in buying pressure. If the trend is sustained, the RSI could crossover the mid-level and push SOL to overcome the $24.33 hurdle and move near the supply zone’s (red) lower boundary of $24.60.
However, for SOL to break out of the supply zone, Bitcoin must exceed the $23.5K level. If this is achieved, SOL could retest the overhead resistance at $26.61. On the other hand, if bears push the price of SOL below the demand zone (green), the bullish bias would be invalidated.
Overall, SOL is in a neutral structure on the three-hour chart and the Funding Rate remains positive despite a slowed development activity. Investors are awaiting the outcome of the FOMC meeting next week, which could trigger another round of price rallies for Bitcoin and other altcoins. The Relative Strength Index (RSI) and On Balance Volume (OBV) are signalling an increase in buying pressure and if the trend is sustained, SOL could overcome the supply zone and move near the supply zone’s lower boundary of $24.60.
• Litecoin [LTC] highlighted five traits that set it apart from other cryptocurrencies.
• LTC has seen a 51% increase from its lowest 12-month level in June 2022.
• Litecoin has been trading within an ascending price pattern, but is it really a better option for this bull run?
Litecoin is one of the oldest and most popular cryptocurrencies in the market today. Recently, the coin has been taking advantage of its press time bull run to build a favorable image and try to steal some of Bitcoin’s [BTC] shine. In a tweet on 21 January, LTC listed five traits that made it appealing and set it apart from its contemporaries.
The five traits included that it was the fairest coin launch ever, with the founder still involved, over 141 million transactions, the ability to use Litecoin almost anywhere, and that it was 4 times faster than Bitcoin. While some may view this statement as an attempt to make Litecoin appear more attractive than Bitcoin, it does not necessarily undermine the competition. Rather, both cryptocurrencies have co-existed in the same market and one does not pose a threat to the other.
Litecoin has so far delivered an impressive rally, but is it really a better option for this bull run? A look at Litecoin’s price action revealed that at the time of writing, it was up by roughly 51% from its lowest 12-month level in June 2022. In contrast, Bitcoin was up by 47% from its November 2022 lows. The former has been trading within an ascending price pattern. An extended upside should at least place it above $100 at the next ascending resistance level.
At press time, the price had some room before reaching the ascending resistance line. There was also another observation that suggested that Litecoin could be headed for a cliff as price to RSI divergence manifests. Despite this, LTC metrics still highlight strong demand, but some whales are taking profits.
It is difficult to predict the future of Litecoin and whether or not it is a better option for the current bull run. Regardless, Litecoin has been growing in popularity and the five traits highlighted in the tweet suggest that it is a cryptocurrency that is here to stay.
• RippleX announced a new grant for its developers worth $2.6 million.
• The grant is focused on sustainability projects and infrastructural development, led by the XRP Ledger (XRPL) team.
• NFT trades volume had fallen to $108,000, however, at the time of the announcement, the volume was as high as $1.21million.
RippleX, the department of Ripple [XRP] that arms its developers with the tools and support for infrastructural development, recently announced an exciting new grant for its developers. The grant will provide a total of $2.6 million to be split among 25 teams across several continents. Julia Heitner, who made the announcement for the RippleX team through a blog post, noted that the funds would be allocated to the development of projects laid down in the Ripple roadmap. This grant, termed ‘Wave 4’, will focus on sustainability projects and infrastructural development, which will be led by the XRP Ledger (XRPL) team.
The XRPL team is also responsible for the development of NFTs (Non-Fungible Tokens) on the Ripple blockchain. However, NFT trading on the Ripple blockchain has not yielded much fruit. According to Santiment, the NFT trades volume had fallen to $108,000. But as of 12 January when RippleX communicated the development, the volume was as high as $1.21million. This quick buying and selling caused a ripple effect which spread to the XRP on-chain volume, and at the time of writing, the XRP volume in the last 24 hours had decreased to$1.06 billion.
Ripple has been responsible for the funding of over 100 projects before this grant, despite its issues with the SEC. Ripple hopes that this grant will provide the necessary support and resources to the development teams, so they can create better and more sustainable projects. The RippleX team has also mentioned that they are open to feedback and suggestions to help them improve the grant program and make it more effective.
It’s great to see RippleX taking this initiative to help developers create projects that can benefit the entire Ripple network and the XRP currency. With the help of this grant, developers will be able to create more innovative and sustainable projects that can benefit the XRP currency and its users. Hopefully, this grant will help to strengthen the XRP community and improve the usage and adoption of the currency, as well as its infrastructure.
• Avalanche’s price surged by over 30% in the last seven days, attributed to its latest partnership with AWS.
• CryptoQuant’s data revealed a major bearish signal, which might restrict AVAX’s price from going up any further in the coming days.
• Avalanche’s NFT ecosystem witnessed growth, with its market cap increasing by 8% and its volume going up by nearly 20%.
The cryptocurrency market has been booming lately, with tokens such as Avalanche [AVAX] surging in price. According to CoinMarketCap, AVAX’s price rose by over 30% in the last seven days, and at the time of writing, it was trading at $15.35. This surge in price can be attributed to Avalanche’s latest partnership with Amazon Web Services (AWS). This partnership will promote the widespread use of blockchain technology in businesses and government agencies, helping to push the token’s price even higher.
Not only that, but AVAX also made it to the list of the top gainers in the Avalanche ecosystem over the last 24 hours. Avalanche’s NFT ecosystem also experienced growth, with its market cap increasing by 8%, while its volume went up by nearly 20%. This growth is encouraging for AVAX investors, and may help push the token’s price even higher.
However, investors should be cautious as CryptoQuant’s data revealed a major bearish signal. The Relative Strength Index (RSI) was in an overbought position, suggesting a trend reversal soon. This could limit the token’s price from going up any further in the coming days.
Overall, Avalanche has had a good start to the year. Its partnership with AWS is likely to drive its price further up in the near future, while its NFT ecosystem has also seen impressive growth. Investors should be aware of the bearish signals in the market, however, and exercise caution when trading AVAX.