This year witnessed a significant growth in the crypto market, with its total cap doubling. Starting from a low point of $800 billion, the market cap recently peaked at $1.7 trillion, marking the highest level since early May 2022, nearly 20 months prior. Interestingly, this surge is not mainly driven by Bitcoin, as seen in recent times, but rather by emerging altcoins, several of which have experienced massive double-digit gains. Consequently, based on their performance in 2023, we have selected the top five altcoins that are expected to lead the market in January.
Altcoin Market Dominance Touches A High
December has seen a strong upward trend in the market, with numerous altcoins reaching new highs for the year. However, Bitcoin has struggled to make significant gains, facing strong resistance at the $45K mark. The continuous defense by sellers against a rise in Bitcoin’s price has paved the bullish way for many altcoins, which are capitalizing on the situation with increased demand and massive double-digit price gains.
Notably, the market dominance of altcoins, excluding the top 10, reached a high for 2023 in December, peaking at 13.5%. Additionally, the market capitalization, excluding Bitcoin, soared to a 1.5-year high of $815 billion. With the upcoming ETF decision in January, investors are showing a growing interest in highly volatile altcoins, aiming to maximize their returns.
Solana (SOL) Price Analysis
Solana recently faced a rejection above the $110 mark and declined below the EMA20 trend line on the 4-hour price chart. However, SOL price might soon trigger a rebound from the 23.6% Fibonacci retracement level, priced at $93.
If successful, this might suggest that market sentiment is still bullish, with traders actively buying during price dips. In such a case, SOL price might aim to break its resistance at $125 in January. A bullish breakout might send the price to hover around $160.
Bonk (BONK) Price Analysis
Bonk price has seen its price correct to a critical support level at $0.0000123, making it a key focus for traders and investors. However, bulls are aiming for a recovery above the EMA20 trend line.
Should the bulls successfully defend this support level, there’s a chance for a relief rally to start. In such a scenario, the BONK might consolidate above $0.000019 for the next few days.
In January, BONK price might surge to breach its resistance at $0.000035 and begin 2024 on a bullish note.
Injective (INJ) Price Analysis
The price of INJ has shown remarkable performance this year, registering an impressive gain of over 2700%. At present, the price is facing a challenge from sellers at the immediate support level of $34. Despite this, buyers are actively preventing a drop below the moving averages, showing strong defense.
Looking ahead to the upcoming week, there’s potential for the INJ price to approach its resistance level at $45. Should it manage to break through this level, there’s a possibility that buyers could drive the price to reach a new all-time high for 2024.
Ethereum (ETH) Price Analysis
Ether price is currently hovering within the pattern’s resistance and support of $2,500 and $2,300, respectively. However, resistance from sellers is strong around the $2,400 mark, leading to a pullback below the EMA20 trend line. Bulls aim to defend the ascending support line ahead of SEC’s ETF decision.
Should the bulls succeed in this, the ETH price might continue its upward trajectory, targeting around $2,500. A bullish news from the SEC in January might skyrocket the ETH price toward $3K.
Chainlink (LINK) Price Analysis
Chainlink’s recent decline might be a profitable opportunity for buyers to accumulate more ahead of 2024’s bull run. Sellers rejected a move above $18 and LINK price is on a heavy decline, aiming to trigger a wave of selling pressure.
However, as the market sentiment remains positive in anticipation of SEC’s decision, LINK price’s decline might not get intensified. As a result, buyers might enter again near the dip of $14.5 and initiate a recovery to challenge the resistance zone of $17-$20 again in January.
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