The cryptocurrency market has been experiencing a surge of optimism, particularly for Chainlink (LINK), Binance Coin (BNB), and Ethereum’s layer-2 scaling solutions. Following a bullish final quarter in 2023, the market’s attention is now on potential rises in January. LINK’s price, which saw a significant increase of around 200% during September and October, has been consolidating within a rising parallel channel.
Despite reaching its highest level of 2023 at $17.67 on December 28th, LINK showed signs of retracement after forming a long upper wick. However, indicators like the RSI suggest a bullish trend, with a hidden bullish divergence also observed. If LINK breaks the resistance trend line at $18.50, it could surge by 75% to the next resistance level of $28.
Conversely, a downward break in the channel could invalidate bullish expectations, potentially leading to a 30% drop to the nearest support level at $11. BNB, after a dip to $202, has been on an upward trajectory, breaking through a long-standing descending resistance trend line. A recent sharp increase took BNB from $270 to $320 in a week.
The weekly RSI indicates a meaningful break above 50, suggesting that BNB could face resistance at $345. Surpassing this could lead to a rise to $450, with no significant resistance in between, marking a potential 40% increase. However, a strong rejection at $345 could result in a 30% drop to the nearest support at $245.
2023’s potential star, Solana (SOL), has brought significant price increases to its ecosystem, which could have caused a liquidity shortage in the Ethereum ecosystem. This may change in January, with growing interest in layer-2 solutions like Arbitrum (ARB) and Polygon (MATIC). ARB is nearing its all-time high and could break above the $1.70 resistance, potentially leading to a 45% increase to $2.50.
MATIC has broken out from a long-term descending resistance trend line, indicating a possible 50% rise to the next resistance at $1.55. Market participants are also closely watching the U.S. SEC’s decision on Bitcoin ETFs, which could significantly impact Bitcoin and consequently the altcoin market.