Solana (SOL) has been one of the biggest gainers over the past 12 months, after losing at least 90% during the cryptocurrency bear market. The cryptocurrency market experienced a massive recovery in 2023, with Bitcoin (BTC) leading the market with a 160% year-to-date gain (YTD).
As the bull market exploded, the tide lifted most altcoins, many of which recorded significant gains. Let’s take a look at the biggest price rebounds of 2023.
Solana wakes up and makes a huge comeback.
Solana had the biggest rebound of 2023, exploding nearly 1,215% from its December 2022 cycle low of $8.27. Moreover, it is up 485% against Bitcoin from its cycle low of 0.00004952 BTC on June 5.
SOL price fell 95% in 2022, one of the biggest losses, falling below $10, primarily due to broad FTX exposure.
However, Solana’s rise in 2023 can be attributed to FTX’s recovery from bankruptcy asset sales, increased decentralized application usage, significant market demand, network activity, and improved network stability.
Solana’s focus on mobile accessibility and efficient transaction features has been shown to attract new users and developers, increasing market adoption and presence.
SOL Price Analysis
Nonetheless, the Solana price chart technical display paints a bearish outline for early 2024.
Interestingly, SOL’s weekly relative strength index (RSI) is still above 70. This makes it more likely that we will experience a downturn in the coming weeks. Additionally, the SOL sell scenario is further strengthened as the cryptocurrency struggles to close above the 0.5 Fibonacci retracement line near $132.05.
The $132 resistance zone was dominant in limiting Solana’s upside in March 2022, resulting in a 94% decline in the price since then. SOL is now at risk of experiencing a similar decline in the first half of 2024, with the main downside target being the multi-year uptrend line support of $40.
Nonetheless, SOL’s upward trend could resume in the second half of the year after testing rising trendline support. That could lead to a surge to the previous high of $265 by the end of 2024.
TRON is up 1,270% since the COVID-19 crash.
Tron (TRX) fell more than 98% in the cryptocurrency market’s 2018-2020 bear cycle. Nonetheless, TRON is currently up over 1,270% since bottoming out around $0.0076 in March 2020, including a 100% rise in 2023.
TRON’s price rise now coincides with strong performance in the decentralized finance (DeFi) industry. Interestingly, the total value locked (TVL) across the TRON ecosystem has surged from approximately 30 million TRX in April 2020 to over 76 billion TRX (about $8 billion) as of December 2023.
TRON will also engage in token burning activities, which will reduce the active supply relative to the increase in TVL, driving the price up significantly.
$TRX Daily burns from transactions have reduced supply for a year and a half.
Hey hey @justinsuntron If I can persuade you @Trondao to burn theirs $TRX Not only is the reserve massively bullish for Tron, it also shows how committed we are… pic.twitter.com/Y8dtxY8o1D
— Dona.inj🥷 (@CryptoDona7) December 24, 2023
TRON also became the largest blockchain with the Tether (USDT) stablecoin growing in market capitalization in 2023. Currently, approximately $49 billion, or more than 50% of all USDT, is hosted on the TRON blockchain.
TRX price analysis in 2024
On the larger time period chart, TRON appears to have reached the top of its giant triangle price range. Therefore, in Q1 2024, we will see the price of TRX oscillating between the upper trend line (~$0.108) and the lower trend line (~$0.095).
Nonetheless, as with all cryptocurrencies, TRON’s price trends for the remainder of the year will largely depend on a wide range of factors, including the approval of a Bitcoin spot exchange-traded fund (ETF), the Bitcoin halving in April, and the general global economy. .
If TRX closes decisively above the upper trendline of the triangle on the weekly chart, the $0.20 target could be reached by 2024.
At the same time, a fall below the lower trend line of the triangle risks the price of TRX crashing to $0.056, a level that is in line with the 0.236 Fibonacci line and the 200-week exponential moving average.
Avalanche price increase 370%
Avalanche (AVAX) price is up 370% compared to the cycle low of $8.65 in September 2023. The rebound followed a 94.25% plunge, one of the largest plunges in a bear market.
Avalanche’s rebound in particular came with nearly 19 million AVAX tokens unlocked in the second half of 2023. The rise in prices shows that the market readily absorbed this additional supply.
However, the Avalanche’s network metrics showed weak underlying demand. For example, TVL across the Avalanche ecosystem plummeted to about 23 million AVAX in December compared to about 55 million AVAX in September when prices began to rise.
AVAX price analysis in 2024
The weakness of AVAX’s upward trend is revealed by the widening gap between rising prices and falling volumes.
Price increases without significant trading volume indicate a lack of strong confidence in these price movements. This could mean that there are fewer traders participating in the market and fewer traders are completely unsure about the sustainability of the price rise.
As of December 29, the price of AVAX was stuck at the 0.618 Fib line near the resistance level of $50.50. A correction towards the next Fib line of $29.50, which could occur in the first quarter of 2024, appears to be already underway.
A further decline below $29.50 could send AVAX down to its next bearish target, the 50-week EMA near $20.16.