Altcoins
Tron Price is on the Cusp of a Bearish Breakout
Tron price remained in a consolidation phase in the past few days as cryptocurrencies recoiled. TRX was trading at $0.054, which was about 21% above the lowest level this month. Like other cryptocurrencies, Tron plunged by more than 50% in 2022.
Consolidation continues
Tron is a leading blockchain project that was started by Justin Sun, the controversial Chinese software engineer. It operates as a blockchain operating system that handles billions of dollars worth of stablecoins on a daily basis.
Tron has been used to build some popular dApps in the industry. For example, it was used to build DeFi platforms like JustLend, JustStables, Sun.io, SocialSwap, and UniFi among others. According to DeFi Llama, Tron has a total value locked of over $4.5 billion, making it the third-biggest chain in the world.
JustLend is a major player in the DeFi industry. It is a lending platform that is an alternative to Aave. It has a TVL of over $3 billion, giving it a market dominance of 66%. Users can supply, borrow, and earn rewards at any time.
According to the website, it has a total supply of over $3 billion and total borrow of over $386 million. Most of these assets are in Tron followed by USDD, USDT, and SUN.
A key risk for JustLend is that it has some exposure to USDD, a relatively risky stablecoin that is similar to Terra USD. Like UST, the stablecoin is backed by a basket of assets like Bitcoin and USDC. Therefore, if it loses its peg, there is a likelihood that it will have a negative impact on Tron.
Another risk for Tron is JustLend’s market dominance. Like we saw with Fantom and Solana, having one entity with so much power can be risky. The second-biggest player in Tron, JustStables and Sun have a TVL of $931 million and $593 million, respectively.
Tron price forecast
The daily chart shows that the TRX price has been in a slow bullish trend in the past few days. Along the way, it formed a small ascending chanel shown in green. It moved slightly below all moving averages while the MACD has formed a bullish divergence pattern. Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $0.0045.
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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