YEREVAN (CoinChapter.com) – The cryptocurrency market suffered heavy losses month-to-date, shaving billions off its collective valuation. Most altcoins like Litecoin (LTC), Tron (TRX), Solana (SOL), Gala (GALA), and Vechain (VET) started the week off with a sideways consolidation, imitating Bitcoin. However, several hinted at a bullish phase ahead. Here are noteworthy details:
#1 Litecoin (LTC) consolidates after a 35% jump
Litecoin (LTC) saw a 45% uptick month-to-date, despite the ubiquitous declines on the market triggered by the FTX debacle. As CoinChapter reported in the previous Litecoin review, LTC outperformed Bitcoin and Ethereum, managing a 35% jump on Nov 22-23. However, the coin consolidated sideways since the bullish push and stood at $78 on Nov 30.
Meanwhile, as a result of the latest uptick, LTC painted a ‘golden cross’ between the 200-day exponential moving average (EMA-200) and the EMA-20. In short, a golden cross occurs anytime a short-term MA crosses above a long-term MA and indicates a bullish phase ahead for as long as the short-term MA retains a dominant position.
Admittedly, the golden cross is a consequence of the price fluctuations and not the reason behind them. However, it could provide additional support in case of price depreciation.
#2 Tron (TRX) eyes a 70% bull run
Tron (TRX) stood at $0.05 on Nov 30, after a 6% weekly uptrend. Moreover, investors could see a 70% price increase around Q1 2023, according to the charts. In detail, the altcoin formed a bullish reversal pattern, known as the ‘falling wedge.’
The latter consists of two dropping trendlines that connect the swing highs and the swing lows and gradually lower the price through consecutive support and resistance retests. TRX would confirm the formation through a break above the resistance trendline. In that case, the target price for the Tron token would stand at $0.09, or 70% higher than the current value.
Admittedly, given the overall bearish sentiment on the market and the declining trading volumes, the expectations remain bleak in the short term. Thus, the long-term bullish scenario might have to wait until the market recovery, and TRX could drop to the wedge’s support in the upcoming sessions, losing the weekly gains.
#3 Solana (SOL) confirmed a bearish triangle
Solana (SOL) was hit hard by the FTX-led slaughter in the DeFi sector. The token lost 60% month-to-date and stood at $13.5 on Nov 30. However, according to the charts, the digital asset could lose another 95% or more, bringing the SOL price to practically zero.
In detail, the SOL/USD price action has been fluctuating within a bearish ‘descending triangle’ since Q2 2022. The formation entails a dropping resistance line and a flat support, that prevent sharp moves in either direction.
SOL confirmed the bearish setup on Nov 8 by breaking below the support. Thus, the target decline equals the maximal price swing within the triangle, pinning the expected price close to zero.
As CoinChapter reported in the previous Solana review, Network metrics put additional bearish pressure on the SOL price. The token’s real volume has declined for more than a year, indicating a lack of investor interest in the blockchain.
#4 Gala (GALA) lost 95% year-to-date, but could gain triple digits
2022 did not bode well for GALA, as the token lost over 95% of its valuation and stood at $0.02 on Nov 30. However, technicals suggest a rally ahead, based on a bullish falling wedge, much like Tron. The target price for the digital asset stands at $0.08, or over 210% higher than the current value.
However, GALA has not confirmed the pattern yet, and traded closer to the support. Judging by the dropping trading volumes, Gala investors might lack the necessary motivation to push the token above the resistance.
Notably, the setup alone is not sufficient to push any digital asset further. A confident rally requires strong buying pressure, which the crypto market lacks at the moment. However, given the right market conditions, technical indicators could provide additional incentive.
#5 Will VeChain (VET) double in price?
Vechain (VET) painted another hopeful falling wedge, like GALA, which promises to take the token from the current $0.02 to $0.04. However, VET’s trading volumes have also declined since Nov 8, fuelling short-term bearish expectations.
Also read: Bitcoin Accumulation Hits Record High amid Massive Crypto Yield Collapse.
As mentioned, the market conditions don’t favor the altcoin bulls. However, if Bitcoin recovers in the upcoming quarter, other digital assets will have a higher chance of rallying.
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