The cryptocurrency market has experienced a surge since October, with significant assets like Bitcoin leading the charge. This momentum has also been felt by Layer-1 projects such as Solana and Avalanche (Avax), which have garnered investor interest through their price actions and ecosystem developments. However, both have encountered recent selling pressures, raising questions about their future trajectories.
Solana’s Technical Outlook
Solana’s price has seen a rebound, crossing above its moving averages and attempting to sustain this upward trend. The balance between supply and demand is reflected in the 20-day EMA and RSI levels. If Solana can maintain its position above the downtrend line, potential targets of $107 and $117 could be within reach, barring any bearish interventions that could push the price back to the $79 support level.
The four-hour chart for Solana shows a bullish sign with the invalidation of a descending triangle pattern, suggesting an influx of buyers and a retreat of sellers. The continuation of this trend could see Solana aiming for the same $107 and $117 price levels, but a drop below $85 would negate this optimistic view.
Avalanche’s Market Position
Avalanche has been trading within a downward channel but saw a resurgence as buyers stepped in at the support line. This buying momentum pushed the price above the 20-day EMA, indicating a possible shift in control from bears to bulls. If Avax can break through the current resistance, it may climb towards $44 and perhaps even the $50 mark.
The rising EMA and a high RSI suggest strong buying pressure, though sellers have previously defended the downtrend line. A downturn at the resistance but a subsequent recovery at the EMA would signal that investors are keen to buy on dips, potentially setting the stage for a breakout above the channel and a move towards $44.