The Shift to Altcoins: Bitcoin Consolidation and Opportunities
The rotation into altcoins continues as Bitcoin price now consolidates between $35K-$38K, creating short-term opportunities for traders to capitalize on rising altcoins. Traders are taking advantage of this shift, which is funneling capital into the altcoin sector and strengthening the support for leading altcoins such as MATIC, Solana, and Chainlink, indicating a promising week ahead.
Probability For A Bullish Trend Continuation Rises
Anticipation for a bullish surge grows in the market with the upcoming Bitcoin halving. Investors who are holding their tokens since the previous surge and those who purchased at peak prices around November 2021 are particularly bullish about potential gains. However, historical trends suggest that not all tokens that reached their highs in 2021 may experience the same peak in the upcoming rally.
Recent trends indicate that Polygon’s MATIC, Solana, and Chainlink could aim to revisit their all-time highs in the next bull run, as these altcoins have shown a consistent increase in value over the past several weeks.
Polygon (MATIC) Price Analysis
Polygon’s price momentum accelerated upon surpassing the $0.70 mark, yet it encountered resistance at $0.87, hinting at potential sell-offs near this high.
A retracement to the $0.7 level, marked by the 38.2% Fibonacci line, could be incoming if the price drops below $0.77. A bounce from this point may boost the chances of Polygon breaking past the $0.87 resistance. Success in this move could signify the completion of a ‘double bottom’ pattern for the MATIC price, targeting a rise above $1 next week.
Solana (SOL) Price Analysis
There’s no doubt that the Solana price is registering massive gains these days, as seen in the daily price chart. SOL price surged by 164% in a month and 41% in the last seven days. Currently, bulls are attempting to breach a crucial resistance level, which will send the price skyrocketing in the coming week.
Should the price of Solana (SOL) hold momentum above the crucial $59 resistance, it could indicate the beginning of a new upward trend, potentially driving the price towards the $70 mark.
Chainlink (LINK) Price Analysis
Chainlink’s price hit $15 recently, with bullish attempts to push the rally further being met with resistance, as witnessed by the long wick on the candlestick indicating sales at higher prices. As of writing, LINK price trades at $16.2, surging over 7.3% in the last 24 hours.
The LINK price might retract to $13, corresponding to the 50% Fibonacci retracement level. A strong rebound from this price could prompt buyers to challenge the $19 resistance. A breakthrough could send the price towards $29.
Conversely, a drop below $13 may signal a sell-off, potentially leading to a drop towards the 20-day Exponential Moving Average (EMA) at $12.3, a level likely to see a fierce contest between buyers holding out for a rally and sellers aiming to profit on recent gains.
