Altcoins start to wake up again: Solana $SOL, Binance Coin $BNB, and Theta Network ($THETA) ready to run

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As a seasoned researcher who has witnessed the cryptocurrency market’s rollercoaster ride for years now, I find myself optimistic about the potential of altcoins in the near future. The combined market cap of all cryptos except Bitcoin and Ethereum seems to be following a promising cup and handle pattern, suggesting that we might be on the verge of a significant altcoin rally.

As Bitcoin ($BTC) appears to be nearing the conclusion of its recent downturn, it seems that several alternative cryptocurrencies are poised for a surge. Solana ($SOL), Binance Coin ($BNB), and Theta Network ($THETA) are three strong contenders for making a significant breakthrough.

Total 3 chart (altcoins) analysis

As an analyst, I’m tracking the market cap of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH). Over the past two weeks, the graph indicates that our projected move from the cup and handle pattern we’ve drawn in yellow is still on course. This implies that alternative coins might need to rally significantly to reach the anticipated target of $1.29 trillion. It’s also worth considering the possibility of a larger cup and handle pattern unfolding, with the current price action potentially forming the handle part of this pattern.

On a negative note, the RSI at the chart’s base suggests that the current 2-week red candle has caused the indicator line to bounce off the falling trendline. For the downward trend to be reversed, this line must subsequently rise and breach the falling trendline.

$SOL could be the first of the major altcoins to recover

Over the past few weeks, Solana’s decline has caught many off guard. Previously, a graceful cup and handle pattern had formed, indicating an upward movement for the SOL price. The outlook appeared promising. However, the significant support at $202 was breached, leading to further decline until the price found stable support at around $176. This dip also aligns with the upward trendline.

Currently, Solana (SOL) is experiencing a 2.3% increase on Monday, and it has encountered its initial horizontal barrier at approximately $184. For Solana’s bullish supporters to maintain their momentum, they need to surpass this level and then repeat the feat if they wish to challenge the crucial $202 major resistance again.

On the weekly chart, the Stochastic RSI (a momentum indicator) is quickly approaching the lower end, hinting at a possible reset. In comparison to Bitcoin ($BTC) and significant altcoins, this Stochastic RSI for Solana ($SOL) seems more advanced. This suggests that the primary recovery of $SOL might start earlier than most other cryptocurrencies.

$BNB breakout or break of trend

For BNB’s weekly chart, the pattern mirrors that of SOL, as both are still experiencing an ongoing uptrend. Notably, BNB is currently at its critical breakout point. A formidable resistance band extends from approximately $660 to $675, and the price is now encountering the upper limit of this resistance barrier.

Option A: BNB might surge again in its uptrend or it may reverse to a downtrend. The Stochastic RSI is decreasing, yet it’s not as intense as that of SOL, suggesting the bearish momentum could prolong, keeping BNB’s price under pressure for some time.

$THETA bulls still have it all to do

Compared to SOL and BNB, the price of THETA is significantly lower than its peak value. Given that we may be nearing the end of the bull market, this suggests a less optimistic outlook for THETA over the long term.

Today’s price increase stands at 4.4%, reaching a crucial horizontal barrier at $2.25. For a potential recovery, bulls must drive the price past this point and beyond the recent peak at $3.80. Only then could we see any signs of a positive trend developing.

Even though the Stochastic RSI indicators are trending towards a decrease from their peak, it’s likely that a reversal may occur. If such an event happens, it’s crucial to prevent a new low from forming beneath $0.90.

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2024-12-23 15:11