Bitcoin price has suffered short-term bearish sentiments since the approval and listing of spot BTC ETFs in the United States, thus paving the way for the much-anticipated altcoin season.
After closing the past two weeks with a bearish outlook, Bitcoin (BTC) price has continued to pave the way for the altcoin market to shine in the near term. Already, Bitcoin’s dominance has been indicating an inevitable reversal in the coming weeks amid heightened bearish pressure. Furthermore, crypto whale traders have been on a selling spree since Bitcoin price reached a psychological resistance level of around $44.5k earlier this month. Additionally, on-chain data shows Bitcoin miners and short-term holders have been offloading their bags. As a result, investors have been diversifying their investments in the altcoin market despite the recent pullback in tandem with Bitcoin price action.
Cardano (ADA) Prepares for Fresh Bull Run
Cardano (ADA) network, a fast-growing layer one blockchain with more than $342 million in Total Value Locked (TVL), has attracted notable attention from investors seeking to diversify their crypto portfolios. Backed by a vibrant team of developers led by co-founder Charles Hoskinson, the Cardano network has been developing competitive scaling solutions dubbed Hydra head protocol and the Mithril network to attract more decentralized financial (DeFi) platforms.
From a technical standpoint, Cardano price has closely been mirroring the 2020 behavior that could lead to an imminent breakout towards a fresh all-time high (ATH) in the coming months. Notably, ADA price on the weekly time frame has been retesting a support/resistance range between 46 cents and 49 cents in the past two months. After experiencing a significant resistance of around 69 cents, which also coincided with the 200 weekly Moving Average (MA), ADA price has been consolidating in a descending triangle that often leads to an inevitable bullish breakout. Based on the weekly auto fib extension, ADA price is likely to reach $1.24 in the next bull run before experiencing a major resistance.
#Cardano's current consolidation phase mirrors its late 2020 behavior. If history repeats itself, we might see $ADA resuming its upward trend around April. This pattern continuation could potentially lead to an upswing toward $0.80, a brief correction to $0.60, then $7! pic.twitter.com/RuRA2EDMNP
— Ali (@ali_charts) January 19, 2024
Solana (SOL) on the Same Bullish Stance
Solana (SOL) network has registered significant growth since the implosion of FTX and Alameda Research more than a year ago. Backed by notable institutional investors, Solana has seen its web3-oriented smartphone dubbed Saga Mobile become a major player in the market. Furthermore, the first version of Saga mobile recently sold out in the United States and Europe. The Solana network, with more than $1.3 billion in TVL, has attracted notable attention due to its deep liquidity and vast global community.
From a technical standpoint, Solana price is well positioned to rally further in the coming months, despite registering about 1000 percent in gains last year. Having found a solid support range between $86 and $89 in the recent past, the SOL price could easily rally towards $200 in the near term. The bullish sentiment could, however, be invalidated if the SOL price consistently closes below $85 in the coming weeks, whereby the next target would be around $75, based on the auto-fib retracement.