Solana (SOL) has been one of the largest gainers in the past 12 months after losing at least 90% during the crypto bear market. The crypto market experienced a massive recovery in 2023, with Bitcoin (BTC) leading the market with 160% year-to-date (YTD) gains.
The rising tide lifted most altcoins as the bull market exploded, with many of these coins recording considerable gains. Let us explore the biggest price rebounds of 2023.
Solana Awakens And Stages A Huge Comeback
Solana made the most significant comeback of 2023, exploding by almost 1,215% from its cycle low of $8.27 in December 2022. Moreover, it is up 485% versus Bitcoin from its cycle low of 0.00004952 BTC on June 5.
SOL price had lost 95% in 2022, one of the largest losers in that year, dropping below $10, mainly due to its extensive FTX exposure.
However, Solana’s rise in 2023 can be attributed to its resilience amid FTX’s bankruptcy asset sales, increased decentralized application usage growth, significant market demand, and network activity and enhanced network stability.
Solana’s focus on mobile accessibility and efficient transaction capabilities also appeared to attract new users and developers, boosting its market adoption and position.
SOL Price Analysis
Solana price chart technical displays are painting a bearish overview for the start of 2024, nonetheless.
Interestingly, SOL’s weekly relative strength index (RSI) is still over 70. Hence, that increases its potential to undergo a pullback in the coming weeks. Additionally, the SOL sell-off scenario intensifies as the crypto struggles to close above its 0.5 Fibonacci retracement line around $132.05.
The $132 resistance zone was dominant in limiting Solana’s upside movement in March 2022, which resulted in a 94% price drop afterward. SOL now risks a similar pullback in the first half of 2024, with its major downside target located at its multiyear ascending trendline support at $40.
Nevertheless, the second half of the year might resume the uptrend for SOL after it tests the ascending trendline support. Then, a surge to its previous record high of $265 might be on the table by the end of 2024.
TRON Gains 1,270% Since Covid-19 Crash
TRON (TRX) dropped by over 98% in the crypto market’s 2018–2020 bear cycle. Nonetheless, TRON is now up over 1,270% since it bottomed out around $0.0076 in March 2020, including a 100% rally in 2023.
TRON’s price gains now coincide with its strong performance in the decentralized finance (DeFi) industry. Interestingly, the total value locked (TVL) across the TRON ecosystem has surged from about 30 million TRX in April 2020 to more than 76 billion TRX (~$8 billion) as of December 2023.
Furthermore, TRON has engaged in token-burning activities, hence reducing its active supply against an increasing TVL, which should push up the price considerably.
$TRX supply is been decreased since a year and a half now , due to daily burning 🔥 from transactions
Yo @justinsuntron if you can convince @trondao to burn their $TRX reserves , none that only will be a massive bullish thing for tron but also will show how committed we are… pic.twitter.com/Y8dtxY8o1D
— Dona.inj🥷 (@CryptoDona7) December 24, 2023
TRON has also become the largest blockchain for Tether (USDT) stablecoin, which has seen its market cap increase in 2023. Currently, over 50% of all USDT, around $49 billion, is hosted on the TRON blockchain.
TRX Price Analysis For 2024
On the bigger timeframe charts, TRON seems to be reaching the apex of its giant triangle price range. Hence, the first quarter of 2024 might see TRX’s price oscillate between the upper trendline (~$0.108) and its lower trendline (~$0.095).
Nevertheless, like all the cryptos, TRON’s price trends for the rest of the year will majorly depend on widespread factors, including spot Bitcoin exchange-traded fund (ETF) approval, Bitcoin’s halving in April, and the general global economy.
The $0.20 target might come within reach by 2024 if TRX decisively closes above the triangle’s upper trendline on the weekly charts.
Simultaneously, a drop below the triangle’s lower trendline risks crashing TRX’s price toward $0.056, a level that coincides with the 0.236 Fibonacci line and the 200-week exponential moving average.
Avalanche Price Gains 370%
Avalanche (AVAX) price has gained 370% when compared to its cycle low of $8.65 in September 2023. Its rebound has come after a 94.25% crash, one of the largest during the bear market.
Notably, Avalanche’s rebound came around the unlocking of almost 19 million AVAX tokens in the second half of 2023. The rising prices show that the markets easily absorbed this additional supply.
However, Avalanche’s network metrics show weaker underlying demand. For example, the TVL across the Avalanche ecosystem plunged to about 23 million AVAX in December compared to around 55 million AVAX in September, when its price rally started.
AVAX Price Analysis For 2024
The weakness in AVAX’s uptrend is visible in the growing divergence between its rising prices and dropping volumes.
The increase in price without considerable trading volume indicates a lack of strong conviction behind this price movement. It might mean that fewer traders are participating in the market and those who may not be fully confident in the sustainability of the price rally.
As of December 29, AVAX’s price has stagnated at its 0.618 Fib line near $50.50 as resistance. A correction seems to be already underway toward the next Fib line of $29.50, which might happen in Q1, 2024.
A further drop below $29.50 may have AVAX drop to its 50-week EMA near $20.16 at the next bearish target.
