3 min read
The cryptocurrency market shows signs of recovery, with Bitcoin on track to return to the $70,000 milestone. Among the top 10 cryptocurrencies by market capitalization, Solana (SOL) and Avalanche (AVAX) have the best price performance, notching the most gains in the last 24 hours.
Solana (SOL) is currently the best-performing token among the top 10, with a +9% recovery in the last day. According to Coinmarketcap data, the price of Solana surged from $176 to $192, continuing its rebound from the weekend. The coin's outlook remains bullish, with consistent performance above its EMA10 (10-day exponential moving average) through 2024 to date, indicating that investors who bought and held the coin for a little over a week have generally seen gains.
Image: Tradingview
However, Solana may be approaching a decisive zone, with the potential for a correction—or a trend reversal in a worst-case scenario. The Squeeze Momentum Indicator (a metric that measures in which part of the market cycle an asset is) suggests a possible switch to a bearish posture, while the ADX (average directional index) indicates that the bullish trend is slowing down. The RSI (Relative Strength Index) has dropped from 86 to 63, signaling a more balanced market mood, albeit still bullish. Traders considering holding the coin for longer timeframes should be cautious, as a correction may be on the horizon.
Avalanche (AVAX) is also experiencing strong price performance, with the native cryptocurrency of the Avalanche ecosystem surging from $53.60 to $58.30 in the last 24 hours—an +8.87% spike. Although the price of Avalanche is still down 10% in the last seven days, its bullish trend continues, with the gap between the EMA10 and EMA55 widening over time.
Image: Tradingview
The Avalanche Foundation's efforts to stimulate its memecoin ecosystem with a liquidity injection program may be contributing to the coin's positive performance. However, like Solana, Avalanche is experiencing some market uncertainty in the short term.
The Squeeze Momentum Indicator also points to a possible bearish correction here, and the RSI is only slightly bullish at 62, with the ADX at a mere 23 —probably in the lower threshold of what can be considered a strong trend. This volatility may present opportunities for scalpers and day traders, but swing traders should exercise caution.
Beyond the cryptocurrency market, global stock markets experienced a minor bearish correction at the start of the week. The S&P 500 is down -0.12%, the Nasdaq -0.14%, and the UK's FTSE100 -0.05%. The Shanghai Composite is down -0.9%, while European markets are performing slightly better, with Spain's IBEX up 0.7%, France's CAC40 up 0.14%, and Germany's DAX up 0.28%.
Overall, markets appear stable on Monday, with no significant movements in either direction.
Edited by Ryan Ozawa.
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