The second week of 2024 has kicked off with the cryptocurrency market experiencing a decline in trading volumes, with numbers dipping below the $30 billion mark on Sunday. This downturn indicates a dwindling excitement that was previously observed in January. Analysts and investors are keenly observing the market for future trends in AVAX, SOL, and XRP coins.
Challenges for Avalanche (AVAX)
Avalanche’s AVAX coin, despite its competitive stance against Ethereum, has struggled to break past the $38 resistance mark during its second attempt. The cryptocurrency’s failure to ignite a rally contrasts with the sustained buzz in the Solana ecosystem. Additionally, Bitcoin’s stagnation has contributed to a subdued appetite for alternative coins such as AVAX. Should AVAX face a downturn, it might find some reprieve at $31.5, but losing this support could see it retracing to $27.3. On the flip side, a close above $38 may pave the way for a rise towards $41.8 and potentially $48.
Solana (SOL) Holds Steady
Solana’s SOL coin has maintained its momentum, staying near the $100 level despite fluctuations in Bitcoin’s value. Although it encounters resistance at $107, SOL shows resilience and potential for faster recovery compared to its peers. However, its value is considered inflated when matched against the locked value within its network. Currently, a breach below the critical $97.5 mark signals potential drops towards $90 or $85, with a base support at $78. A rebound scenario could see SOL climbing to $107, then $111, and possibly higher to $126 and $150.
Ripple (XRP) Faces Headwinds
Ripple’s XRP coin has not seen the uptrend investors hoped for this year. The ongoing lawsuit, collective appeal process, and a growing supply base have placed downward pressure on its price peak. An optimistic outcome would be XRP matching its 2021 market value, reaching around $1.3 per coin, although this would result in minimal gains for long-term holders due to the inflated circulating supply. XRP’s lost support in the parallel channel suggests that without reclaiming $0.58, a continued rise is unlikely. Persisting sell-offs could push the price down to $0.46 and even $0.41.