Amid the massive liquidations, the price trends of Toncoin and Solana suggest a possible bounce-back. Will a reversal lead to a new all-time high for Solana and Toncoin?
With Bitcoin BTC $97 455 24h volatility: 2.3% Market cap: $1.93 T Vol. 24h: $114.27 B dropping to $98,270, the altcoin market is witnessing a minor pullback. Over the last 24 hours, the fifth-biggest token, Solana, has dropped by 5.09%, and Toncoin has dropped by 4.92%.
With the rest of the top altcoins witnessing a drop of 5.29%, the selling pressure in the crypto market has significantly increased.
Amid the increased supply pressure, the crypto market has lost $562 million over the past 24 hours. While the short side has lost only $100 million, the rest comes from the long-side optimistic traders. The ongoing pullback is assumed to be a long squeeze, as the increased optimism led to high-leveraged positions.
Despite the drawbacks, a community analyst for CryptoQuant, maartunn, predicts a new all-time high for Toncoin and Solana. The prediction considers strong fundamentals, including active development teams and active networks.
With the intraday pullback of 5.06%, the TON $6.41 24h volatility: 4.6% Market cap: $16.43 B Vol. 24h: $508.80 M price has dropped from 61.80% Fibonacci level to the crucial 50% Fibonacci support. This extends from $6.7855 to the current market price of $6.4456.
Creating a new bearish and guilty candle, the price fall acts as a retest of the broken resistance line. Furthermore, prior to the intraday pullback, the TON price revealed a massive surge of nearly 50% during the broader market recovery.
With a lower price rejection in the bearish engulfing candle, the TON price sustains dominance above the 50% Fibonacci level. Furthermore, it trades at a discount of 21.89% from its all-time high of $8.28.
The intraday pullback leads to a bearish crossover in the MACD and Signal line. However, the positive crossover between the 50-day and 100-day SMA lines reflects a short-term bullish reversal.
Based on the Fibonacci levels, the post-retest reversal in the Toncoin, surpassing the $7.00 psychological mark, will likely result in a retest of the 52-week high at $8.28.
As the broader market recovers by the end of December, the Fibonacci levels paint the price target at $9.30 as the new all-time high for Toncoin.
In the 4-hour chart, the Solana SOL $223.4 24h volatility: 5.2% Market cap: $106.41 B Vol. 24h: $7.02 B price trend forms a local resistance trend line due to the lower high creations. However, the price trend finds constant support near the $222 level. This creates a descending triangle pattern.
At press time, the Solana price is trading at 47.76%, a discount from its all-time high of $264.32. This reflects room for growth in Solana if the broad market recovers.
The Solana price is currently trading at $225, creating a bullish candle to end the streak of four consecutive red candles. This also increases the chances of a bullish comeback and sustains dominance above the $222 support level.
Due to multiple supports, the 4-hour RSI line reveals a surge in the underlying sentiments with a bullish divergence. This increases the chances of a new bounce back to challenge the overhead resistance trendline.
As the bullish divergence fuels the bullish chances, a breakout rally will likely result in a new all-time high for Solana. Surpassing the $265 R2 resistance pivot level, the upside targets for Solana are $283.29 and $301.39.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
