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These 3 coins came back from the dead in 2023

The cryptocurrency market has seen a substantial recovery in 2023, with the leading cryptocurrency, Bitcoin (BTC), leading the market with gains of 160% year-to-date (YTD).

This rising tide lifted many altcoins as the bull market took off, with several seeing substantial gains. Let’s take a closer look at the biggest price rebounds of 2023.

Solana makes her comeback

Solana (SOL) has made the biggest comeback of 2023, up almost 1,215% from its cyclical low of $8.27 in December 2022. Additionally, it is up 485% against Bitcoin from its cyclical low of 0.00004952 BTC on June 5.

SOL/USD daily price chart. Source: TradingView

SOL price fell 95% in 2022, one of the biggest losers that year, to below $10, mainly due to its exposure to FTX.

But Solana’s rise in 2023 can be attributed to its resilience in the face of FTX’s bankrupt asset sales, significant growth in the use of decentralized applications, increased market demand and network activity, and improved network stability.

Solana’s focus on mobile accessibility and efficient transaction capabilities has also attracted new users and developers, strengthening its market position and adoption.

SOL Price Analysis

Technical data from the Solana price chart, however, paints a picture of a bearish outlook for early 2024.

Notably, SOL’s weekly Relative Strength Index (RSI) remains above 70, increasing its pullback potential in the coming weeks. Additionally, the SOL sell case is rising as it struggles to close above its 0.5 Fibonacci retracement line near $132.

SOL/USD weekly price chart. Source: TradingView

The $132 resistance level was instrumental in limiting Solana’s upward attempts in March 2022, which subsequently led to a 94% price drop. SOL risks a similar pullback in the first half of 2024, with its main downside target at its multi-year ascending trendline support (around $40).

Nevertheless, the second half of the year may resume the SOL uptrend after testing the ascending trendline support. Then, a rise towards its previous high of around $265 could be on the cards by the end of the year.

Tron up 1,270% since Covid-19 crash

Tron (TRX) crashed by over 98% during the crypto market’s 2018-2020 bear cycle. However, TRX/USD is now up over 1,270% since its low near $0.0076 in March 2020, including a 100% rally in 2023.

TRX/USD Weekly Price Chart. Source: TradingView

Tron’s price increases coincide with its strong performance in the decentralized finance (DeFi) sector. Notably, the total value locked (TVL) in the Tron ecosystem has increased from almost 30 million TRX in April 2020 to over 76 billion TRX (~$8 billion) in December 2023.

Tron TVL performance chart. Source: DéfiLlama

Additionally, Tron has engaged in token burning activities, thereby reducing its active supply in the face of rising TVL, which is expected to drive the price higher.

Tron also became the largest blockchain for the stablecoin Tether (USDT), whose market capitalization also increased in 2023. Today, more than 50% of all USDT, or almost $49 billion, exists on the Tron blockchain.

TRX Price Outlook for 2024

On longer-term charts, Tron appears to be reaching the top of its giant triangle price range. Therefore, the first quarter of 2024 will likely see the TRX price fluctuate between the upper trendline of the triangle (~$0.108) and its lower trendline (~$0.095).

TRX/USD Weekly Price Chart. Source: TradingView

However, like all cryptocurrencies, Tron’s price trends for the remainder of 2024 will largely depend on broader factors, such as the spot approval of a Bitcoin exchange-traded fund, the Bitcoin halving in April and the global economy in general.

The $0.20 target could be reached by 2024 if TRX closes decisively above the upper trendline of the triangle on the weekly chart.

Conversely, a break below the triangle’s lower trendline risks sending TRX price towards $0.056, a level coinciding with the 0.236 Fibonacci line and the 200-week exponential moving average (EMA of 200 weeks; the blue wave).

Avalanche prices up 370%

Avalanche (AVAX) price is up nearly 370% from its cycle low of $8.65 in September 2023. Its rebound comes after a 94.25% crash, one of the most bear market.

AVAX/USD weekly price chart. Source: TradingView

Interestingly, Avalanche’s rebound occurred around the unlocking of nearly 19 million AVAX tokens in the second half of 2023. The price rise indicates that markets easily absorbed the additional supply.

Still, Avalanche’s network metrics show lower underlying demand. For example, TVL in the Avalanche ecosystem fell to around 23 million AVAX in December, compared to around 55 million AVAX in September, when the price rally began.

Avalanche TVL performance chart. Source: DéfiLlama

AVAX Price Outlook for 2024

The weakness of AVAX’s uptrend is visible in the growing divergence between its rising prices and falling volumes.

Related: Cardano (ADA), Solana (SOL), and Polkadot (DOT) Soar – Is It a New Season?

Rising prices without significant trading volume suggest a lack of conviction behind the price movement. This may mean that fewer traders are participating in the market and those who are may not be fully confident in the sustainability of the price rise.

AVAX/USD weekly price chart. Source: TradingView

As of December 29, AVAX price was stuck at its 0.618 Fib line, near $50.50 as resistance. A correction already appears to be underway towards the next Fib line of $29.50, which could take place in Q1 2024.

A further decline below $29.50 could see AVAX fall to its 50-week EMA near $20.16 as the next downside target.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.