Altcoins
Best Altcoins to Buy on January 3: MKR, SOL, BONK
Wednesday’s crypto market selloff sent Bitcoin and most altcoins tumbling, with losses exceeding double digits. Bitcoin price plunged to $40,000 after nearing $46,000, while Ethereum, after reaching $2,400, fell back to test support at $2,100. Major altcoins like Maker (MKR), Solana (SOL), and Bonk (BONK) have not been spared from the volatility, as their uptrends have come to an abrupt halt, potentially presenting buying opportunities for investors looking to capitalize on the decline.
What is behind cryptocurrency price volatility?
Uncertainty over the approval of cash exchange-traded funds (ETFs) in the United States is leading to increased volatility. In December, experts and investors agreed that the Securities and Exchange Commission (SEC) was ready to move to spot Bitcoin ETFs in January.
The growing optimism boosted the market with tokens like SOL and MKR breaking out significantly. ETFs are expected to be new channels to channel investment into the crypto market, with operators likely to increase demand for BTC, creating an environment ripe for a bull run.
However, a new report published by Matrixport design firm punctured expectations, stating that the SEC would likely reject all requests. According to the report, despite refiling recent proposals and meeting with SEC officials, applicants appear to have missed a requirement that could take them until the second quarter to complete.
Despite the uncertainty, this article will look at the three best altcoins to buy for 2024.
Read also: Crypto Price Prediction for January 3: SOL, ICP, MKR
Solana Price Retreat Below $100, A Dip Buying Opportunity?
Solana became the top performer in the fourth quarter of 2023, where it consistently reached new yearly highs. Its breakout above $100 in December reinforced the uptrend as FOMO spread among investors at $125.
However, due to extreme overbought conditions, SOL price embarked on a trend correction, pushed lower by profit-taking initiatives.
The market sell-off on Wednesday caused Solana’s price to drop below $100, with the candle wick extending to $85.
SOL Price Chart
Although SOL is back at $100, the Moving Average Convergence Divergence (MACD) indicator’s sell signal implies that the downtrend is far from over.
This means that if support at $100 does not hold, Solana Price could fall to sweep liquidity at the 200 exponential moving average (EMA) (in purple) at $88.
If Solana stabilizes above $100, it is likely to attract investors amid calls for a sharp rise to $125 and then the next major breakout to $200.
Maker’s Price Prediction as Triangle Breakout Sends MKR to $2,000
After a bullish fractal, Maker price broke out of an elaborate ascending triangle with a 55% target at $2,423. Now that MKR has already started the breakout, it may be essential to look for higher support, preferably above $1,830, before seeking exposure with long orders.
Caution is advised, particularly given the uncertainty surrounding the ETF’s approval, which could trigger a sell-off if rejected.
On the positive side, the ETF green light could collectively boost the crypto market, including top altcoins like Maker.
MKR Price Chart | Commercial view
Due to the MACD indicator’s buy signal, the bulls will likely keep the reins while MKR climbs to the triangle breakout target at $2,423. A break above $2,000 would indicate that the uptrend is strong and ready to continue.
A trend reversal will follow the blue MACD line falling below the red signal line. In such a scenario, it might be prudent to lock in gains and buy at a lower price, for example the previous triangle resistance at $1,564 and $1,450.
Bonk Price Prediction as Bulls Seek Support
Bonk continues to pour several weeks after the November pump fueled by listings on Binance and Coinbase. The meme coin built on the Solana blockchain remarkably exploded to $0.000035 in early December, supported by exposure to a large audience.
Bonk Price Chart | Commercial view
After this commendable rally, some investors took profits, leading to an ongoing trend correction within the confines of a descending channel.
The MACD indicator confirms the bearish outlook with a sharp sell signal. As the MACD moves lower toward the neutral zone, more traders are encouraged to sell, adding pressure to the headwinds.
The 50-day exponential moving average (EMA) (in red) could serve as a preferred entry position for investors looking to invest in Bonk in US Dollars (DCA) if it holds steady at $0.00001194.
The bleeding will continue if this support fails to hold, which would open the door for bears to explore and push Bonk below $0.00001. Nonetheless, finding a good entry point could help investors capitalize on Discovery of the Bonk price at $0.0001.