The recent crypto market downturn has prompted many investors to sell off top altcoins. The timing and wisdom of these exits remain uncertain. However, capitalizing on volatility now to accumulate promising projects before a potentialbullish turn, possibly in late 2024 or early 2025, seems prudent.
Now that the market has seen a notable shift with rising investor optimism, tokens are nearing record levels. Seeking substantial returns, a select few cryptocurrencies stand out for potential gains amid the overwhelming choice available.
Moreover, Bitcoin’s historical pattern suggests a delayed reaction post-halving despite recent all-time highs driven by approved spot Bitcoin ETFs. Investors anticipating a broader market recovery with Bitcoin should consider evaluating the following projects.
Solana (SOL-USD)
Solana (SOL-USD), a leading altcoin, faced a recent correction. This token dropped from a Q1 2024 high of $210 to around $150 at the time of writing. Despite the decline, some experts see this as an opportune moment for investors to consider Solana, given its technical fundamentals.
The charts show Solana trading sideways within a broader flag pattern after a March spike over $200. Currently at around $130, down 40% from March highs, the $120-$125 range is key support. Many anticipate a rebound from this level, though a rise above $190 would more definitively signal an uptrend resumption.
Despite the decline, Solana is poised to be a spot ETF candidate due to its consistent relevance across cycles and competition with Ethereum in various sectors. It has significant market share in the NFT space and attracts meme coin traders with low fees. Solana’s growth potential is linked to Ethereum. If Ethereum’s transaction fees rise, traffic may shift to Solana. The reduction in network downtime also enhances Solana’s growth prospects.
Avalanche (AVAX-USD)
Supporting cost-effective decentralized applications and smart contracts, Avalanche (AVAX-USD) is another crypto to hoard now. Its Durango upgrade, featuring the Teleporter platform for seamless blockchain data exchange, boosted AVAX by 50%. This design results in higher throughput while maintaining decentralization. Among its use cases, a crypto derivatives exchange is notable for potentially driving substantial demand, highlighting Avalanche’s potential for creating profitable applications.
Despite market turbulence and Bitcoin’s decline to around $71,500, Avalanche showed resilience, surpassing its 20-day EMA. Currently, Avalanche is nearing its crucial $23.34 support level after an 8.34% drop last week, trading at $25.34.Wu Blockchain reports ZachXBT’s investigation reveals the decline is due to an entity transferring 1.96 million AVAX to exchanges like Coinbase (NASDAQ:COIN), Binance, and Gate.
However, technical experts suggest now is a good time to invest, with Avalanche’s sub-net infrastructure being a keylong-term hold reason.
Ethereum (ETH-USD)
While Ethereum (ETH-USD) boasts the largest altcoin ecosystem and a substantial market capitalization, it hasn’t outshone Bitcoin (BTC-USD) recently. The delay in launching spot Ethereum ETFs is a significant factor. However, there’s optimism as senior ETF Analyst Eric Balchunas hinted at potential SEC approval by July 2, per Coinpedia. This approval could attract hedge funds similar to Bitcoin earlier in the year.
ETH price failed to reach and stabilize above $3,500. The low hit $3,230, correcting slightly above $3,300. Recently, ETH remained below $3,450. Resistance is expected to reach $3,375 or a retracement level of the recent $3,517 drop to $3,320. The primary resistance stood at $3,540; surpassing it could lead to further gains towards $3,620 and potentially to $3,650. Subsequent upward movement might target the $3,720 resistance zone in the coming days.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
