Altcoins
Ethereum Price Faces Rejection at $2K as XRP Rally Wanes
Ethereum price has been in the red for four consecutive days after facing a strong rejection at the crucial level of $2,000. The asset’s total crypto market cap has dipped by nearly 2% over the last day to $228 billion, while the total volume of Ether traded over the same period jumped by 58%. Even so, the altcoin remains 58.70% higher in the year to date.
Crypto Sentiment
The cryptocurrency market has been under intense pressure for the past few days as its recent XRP-induced rally fades slowly. The global crypto market cap has slipped over the past few days to $1.2 trillion, while the total crypto market volume increased by 40% over the last day. The Crypto Fear and Greed Index has also dipped from a Greed level of 63 to a neutral level of 57, indicating the lack of confidence by investors.
Crypto bigwigs, Bitcoin and Ethereum, have been in a freefall for the past few days as the cryptocurrency market sentiment dwindles. Bitcoin, the largest cryptocurrency by market cap, has hit an intraday low below the important level of $30,000 after facing a rejection at $31,000. At the time of writing, Bitcoin price was trading lower at $29,994. Ethereum price has also dropped below the crucial level of $1,900 to its current level of $1,899.20.
While the Ripple Labs’ court case against the US Securities and Exchange Commission buoyed the crypto market sentiment last week, economic headwinds have continued to weigh on the markets. Despite a decline in the latest key inflation data, traders are pricing in a 92% chance of the US Federal Reserve implementing a 25-basis point interest rate hike this month. A slew of policymakers, including the Fed chair Jerome Powell, have signaled their support for two more hikes this year.
Investors have remained focused ahead of a few economic data reports this week. The UK and European Consumer Price Index (CPI) reports are slated to be released later on Wednesday. The UK inflation, as well as the Eurozone inflation, is expected to have eased during the past month. The US retail sales report is also expected to be released later on Tuesday.
Ethereum Price Technical Analysis
The daily chart shows that the Ethereum price has been on a bearish trajectory for the past few days after a recent win for the crypto market. The asset has failed to start a fresh rally above the important resistance level of $2,000. ETH remains slightly above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages.
Its Relative Strength Index (RSI) has slipped slightly below the signal line, with the Moving Average Convergence Divergence (MACD) indicator hinting at more downside. Therefore, the Ethereum price is likely to pull back further in the ensuing sessions as sellers eye the next support at $1,845. However, a move above the important $2,000 level will invalidate the bearish thesis.
ETH Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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