Altcoins Poised for Breakouts as Bitcoin Stabilizes

Monday, December 23, 2024 12:00 AM
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As Bitcoin ($BTC) appears to be nearing the end of its latest reversal, altcoins are positioned for potential upward movement. Notable candidates for breakouts include Solana ($SOL), Binance Coin ($BNB), and Theta Network ($THETA). The Total 3 chart, which tracks the combined market cap of all cryptocurrencies excluding $BTC and $ETH, indicates that the market cap is on track to achieve a target of $1.29 trillion. The chart also hints at the formation of a larger cup and handle pattern, suggesting that altcoins have significant room for growth. However, the RSI indicates a rejection from a descending trendline, which must be overcome for a reversal to occur.

Solana has experienced a surprising downturn despite previously breaking out from a cup and handle pattern. After losing support at $202, $SOL found a foothold at $176, aligning with an upward trendline. Currently, $SOL is up 2.3% and is testing horizontal resistance at $184. For $SOL bulls to regain momentum, they must break this resistance and aim for the critical $202 level. The Stochastic RSI indicates that $SOL is poised for a potential recovery ahead of other major altcoins, given its more advanced position compared to $BTC.

In contrast, Binance Coin is at a critical breakout level, facing strong resistance between $660 and $675. The outcome of this resistance will determine whether $BNB continues its upward trend or faces a downturn. Meanwhile, Theta Network remains significantly below its all-time high, with the price currently at $2.25 after a 4.4% increase. For $THETA to initiate a recovery, it must surpass this resistance and the local high of $3.80. However, the Stochastic RSI suggests a high probability of rejection, emphasizing the need to avoid a drop below $0.90 to maintain bullish sentiment.

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