The cryptocurrency Bitcoin (BTC) has made further gains in recent trading days, and most altcoins have also seen price gains. Solana (SOL) in particular is defying every hint of price weakness and is once again trending significantly higher.
The breather on the crypto market lasted only briefly. In the past trading week, the bulls regained their old strength and lifted the vast majority of altcoins northwards once again. Solana (SOL) in particular knew only one direction this week and is currently jumping from all-time high to all-time high. The mixed bag of many cryptocurrencies continues to be bullish and could provide further upside for the overall market.
Best price performance among the top 10 altcoins: Solana (SOL)
Solana continues to blithely move north and was also able to overcome the next important price target at USD 121.79 on the third attempt. Currently, Solana is consolidating slightly sideways, but the northward pointing upper Bollinger band makes a trend continuation towards 160.94 USD increasingly likely.
Bullish variant (Solana)
Currently, Solana is preparing to open its own NFT marketplace. If interest in non-fungible tokens remains unabated, the 361 Fibonacci extension is likely to be targeted in the near term. If the bulls manage to sustainably overcome this resistance without any significant price setbacks, a march through to the 461 Fibonacci extension at USD 200.09 is also conceivable in the coming trading weeks. At this psychologically important resistance level, however, investors are likely to want to take further profits. In perspective, Solana could even set its sights on the 561 Fibonacci extension at USD 239.24 in the coming months. Likewise, a price jump to the maximum derivable price target at USD 278.38 does not seem unrealistic by the end of the year. This target projection is derived from the 661 Fibonacci extension. This would bring Solana to the market cap of Binance Coin (BNB) and Cardano (ADA).
Bearishe variant (Solana)
If Solana bounces more significantly to the south in the area of USD 160.94 or already before that, a consolidation to USD 121.79 is likely initially. If this support is dynamically undercut, the area around USD 107.81 comes into view. In addition to a horizontal support, the EMA20 (red) is also found here. Even a short setback in the direction of 97.60 USD would be absolutely unproblematic from a bull perspective. This cross support from the 200 Fibonacci extension as well as the super trend acts as the first relevant indicator. Once again, the buy side will be ready here and want to initiate a new upward movement. However, if the bears manage to break through this price level on the daily closing price, the consolidation will extend to USD 82.64 or even USD 79.00. If this area also fails to hold, the price will fall. If this area also fails to hold, the area around USD 73.48 comes into view.
This multiple support consisting of the 138 Fibonacci extension, the EMA50 (orange) and the upper edge of the bull flag represents the maximum bearish price target in the short term. If the SOL price does not turn significantly northwards in this area and then falls back into the flag and also breaks through the support at 70.85 USD, the price should weaken again and fall back to at least 64.06 USD. Even a correction to the old all-time high at USD 58.61 should be planned. At this price level, the old all-time high from May 19, strong resistance is again to be expected. A daily close below this strong support would further cloud the chart picture in favour of the bears. In the medium term, a fall back to the maximum medium-term price targets on the downside at USD 52.83 and USD 50.07 would then no longer be ruled out.
The RSI as well as the MACD indicator continue to show a buy-signal and so far make no attempt to negate them. Thus, investors should use price setbacks to USD 100 or below as a buying opportunity.
Worst price performance among the top 10 altcoins: Cardano (ADA)
The price of Cardano is unable to stabilize above USD 3.00 despite the pre-expectation of the implementation of smart contracts in the wake of the Alonzo update. Currently, the air seems to be out a bit, which is reinforced by the bearish divergences in the RSI indicator. In the short term, the ADA price must now hold above USD 2.70 in order to generate further upside potential. Only a price stabilization above the 138 Fibonacci extension will allow higher price targets.
Bullish variant (Cardano)
As recently as the previous week, the buying pressure on Cardano looked sustainable. However, as ADA failed to sustainably overcome the 138 Fibonacci extension at USD 3.02 and is currently also threatening to fall back below USD 2.86, the bulls will have to show in the coming days how serious they are about a follow-through rise towards USD 3.36. If the 161 Fibonacci extension can be attacked, a very important resistance level would be reached. If there is no significant sell-off here, the 200 Fibonacci extension at USD 3.92 will come into view.
If developers show strong interest in dApp programming on the ADA chain, a rise to USD 4.83 can be expected in the medium term. This would mean that the price target of USD 5.00 mentioned by many analysts has almost been reached. If Cardano becomes increasingly popular in the developer community, a price jump to the 361 Fibonacci extension at USD 6.29 is conceivable in the medium term. If there is a year-end rally on the market as a whole, the ADA price could even take off in the direction of the 461 Fibonacci extension at 7.75 USD. For the time being, this price level represents the maximum target.
Bearish variant (Cardano)
Since the last price analysis on September 3, the ADA price did not manage to overcome the resistance at USD3.02 on a daily closing basis. This brings the EMA20 (red) back into focus as the first relevant support at USD2.70. If the bears manage to push the ADA price dynamically below 2.70, a correction extension to 2.46 USD is likely. Here, the first buyers are likely to come back into the market. A drop back to USD 2.30 is also unproblematic from the bulls’ point of view and is a short-term price target for the coming trading days.l on the downside. A clear rebound to the north is to be expected at the latest at the super-trend. Should this support level be undercut on the daily closing price, the correction will extend to 2.15 USD. Here, besides the 78 Fibonacci retracement, the EMA50 (orange) is also found.
If this support level is also breached against expectations, price targets at USD 2.02 and USD 1.90 are activated. Particular attention should be paid to the cross-support of the 61 Fibonacci retracement and the low of August 18 at 1.90 USD. A short price decline to USD 1.82 or even USD 1.74 would also be conceivable. This is where the 50 Fibonacci retracement and the lower Bollinger band are located. If the USD 1.74 area also fails to provide support, a fall back to the green support zone is to be expected. In addition to the 38 Fibonacci retracement at USD 1.56, the breakout level of the current price rally and USD 1.48 can be found here. Furthermore, the important moving averages MA200 (green) and EMA200 (blue) are located in this area. From today’s perspective, Cardano could correct to the USD1.35 level at the most. For the time being, however, this scenario is considered unlikely.
The mentioned bearish divergence in the RSI indicator unfolded its power in the last trading days. The buy side seems to be somewhat exhausted in the short term and may need to regain momentum to realize a sustained stabilization beyond USD 3.02. As the MACD indicator has also generated a sell signal, investors should first wait for a bottoming out before making new purchases. However, the bullish assessment remains unchanged, as both indicators continue to show a buy signal in the weekly chart.
Stability of the Top 10
After a mixed previous week, the top 10 altcoins are also picking up steam. The top 10 cryptocurrencies are all showing week-over-week price appreciation. The majority of the top-10 altcoins are also rising more than Bitcoin itself. Once again, Solana (SOL) can claim the weekly win with a 53 percentage point increase in value. Polkadot (DOT) and Chainlink (LINK) are also bullish, both rising 34 percent to the north. With 22 percent and 20 percent price increases, Ethereum (ETH) and Ripple (XRP) can also generate a respectable price increase. In contrast, Cardano (ADA) and Binance Coin (BNB) are trending sideways with only one and four percentage points of value growth, respectively, in a weekly comparison. Looking at the leaderboard, there are two place changes. Solana swaps places with Dogecoin (DOGE) and moves up to sixth place. Chainlink (LINK) also returns to 10th place, pushing Terra (LUNA) out of the rankings.
Winners and losers of the week
After a brief breather and slight profit-taking in Bitcoin, it is able to stabilize above the psychological $50,000 over the weekend, pulling the overall market up as well. Around 90 percent of the top 100 altcoins are up for the week. Fantom (FTM) in particular stands out with 125 percent price appreciation. Also bullish are IOTA (MIOTA) and the previous week’s winner Bitcoin Cash ABC (BCHA). Both altcoins are up 91 percentage points north. Also the Neuling eCash (XEC) and Quant (QNT) can convince with 81 percent and 68 percent, respectively.
Around half of the top 100 altcoins have risen by more than 20 percentage points this week. This underlines the friendly sentiment in the crypto market. The short list of weakening altcoins is led by the meme coin SafeMoon (SAFEMOON) with a six percent price drop, followed by Flow (FLOW) with a good five percent price drop. Furthermore, Tezos (XTZ) loses four percentage points in value due to slight profit-taking, which is not surprising after a strong performance in the previous week.
Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are merely the analyst’s assessment.
The chart images were created with the help of TradingView to create the charts.
USD/EUR rate at the editorial deadline: 0.84 euros.