The cryptocurrency market experienced a significant recovery in 2023, led by Bitcoin (BTC), which gained 160% year-to-date (YTD). This upward trend also benefited many altcoins, with several experiencing substantial price increases. Let’s take a closer look at the most notable price rebounds of 2023.
Solana (SOL) had the biggest comeback of the year, surging nearly 1,215% from its low of $8.27 in December 2022. Against Bitcoin, it saw a 485% increase from its low of 0.00004952 BTC on June 5.
Solana’s price had dropped by 95% in 2022, making it one of the biggest losers that year, primarily due to its exposure to FTX. However, in 2023, Solana’s resilience amid FTX’s bankruptcy asset sales, significant growth in decentralized application usage, increased market demand and network activity, and improved network stability contributed to its rise. Additionally, Solana’s focus on mobile accessibility and efficient transaction capabilities attracted new users and developers, strengthening its position in the market.
Despite the positive performance in 2023, Solana’s price chart technicals indicate a bearish outlook for the beginning of 2024. The weekly relative strength index (RSI) remains above 70, suggesting a potential pullback in the coming weeks. Furthermore, the resistance level at $132 poses a challenge, as it previously limited Solana’s upside attempts in March 2022 and resulted in a significant price crash. If the pullback occurs, the primary downside target for Solana is its multiyear ascending trendline support at around $40. However, the second half of 2024 may see a resumption of the uptrend, potentially leading to a climb to its previous record high of around $265 by the end of the year.
Tron (TRX) experienced a 1,270% increase since the Covid-19 crash in March 2020. It had previously crashed over 98% during the crypto market’s bear cycle from 2018 to 2020. Tron’s price gains align with its strong performance in the decentralized finance (DeFi) sector. The total value locked (TVL) across the Tron ecosystem has significantly increased, reaching over 76 billion TRX (~$8 billion) as of December 2023. Tron’s engagement in token-burning activities, coupled with its status as the biggest blockchain for stablecoin Tether (USDT), has contributed to its price rise.
Looking ahead to 2024, Tron’s price outlook will depend on broader factors such as the approval of a Bitcoin exchange-traded fund, Bitcoin’s halving in April, and the global economy. In the first quarter of 2024, Tron’s price is expected to fluctuate between the upper trendline (~$0.108) and the lower trendline (~$0.095) of its giant triangle price range. If Tron decisively closes above the upper trendline, it may reach a target of $0.20 by 2024. However, a break below the lower trendline could result in a price crash towards $0.056, coinciding with the 0.236 Fibonacci line and the 200-week exponential moving average (200-week EMA).
Avalanche (AVAX) saw a price increase of nearly 370% from its low of $8.65 in September 2023. This rebound occurred after a 94.25% crash during the bear market. Interestingly, Avalanche’s price rise coincided with the unlocking of nearly 19 million AVAX tokens in the second half of 2023, indicating that the market easily absorbed the additional supply. However, Avalanche’s network metrics show weaker underlying demand, as the TVL across the Avalanche ecosystem dropped from around 55 million AVAX in September to around 23 million AVAX in December 2023.
Looking ahead to 2024, Avalanche’s price trend shows a growing divergence between rising prices and declining volumes, suggesting a lack of strong conviction behind the price movement. This could indicate that fewer traders are participating in the market, and those who are may not be fully confident in the sustainability of the price rally. As of December 29, AVAX’s price has encountered resistance at its 0.618 Fibonacci line near $50.50. A correction is already underway, and a further decline below $29.50 could lead to a drop to the 50-week EMA near $20.16 as the next bearish target.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.