While the Bitcoin price is currently stuck in a sideways trend, a few altcoins on the crypto market are currently showing a strong momentum. These three altcoins are currently attracting the attention of investors and traders alike: Shiba Inu (SHIB), Solana (SOL), and Polygon (MATIC). Let’s dive into the technical chart analysis of these altcoins and examine the potential price moves that could unfold this week.
Shiba Inu (SHIB) – A Make-or-Break Moment
SHIB finds itself at a critical juncture, where the next move could determine its trajectory for the rest of the year. After experiencing a remarkable rally earlier this year, SHIB entered a descending trend channel at the beginning of February, dragging its price below the yearly opening level. However, a breakthrough from this channel occurred over the weekend, signaling a potential reversal.
As the SHIB bulls attempt to validate this breakout, their success could propel the price upwards by 30%, as NewsBTC reported yesterday. This would bring SHIB towards the resistance area between $0.00000969 (200-day EMA) and $0.00000977 (38.2% Fibonacci), with a significant psychological milestone of $0.00001 within reach.
Nonetheless, a confirmation of the breakout is still pending. While the Shiba Inu price managed to stay above the trend channel yesterday, the bulls are still hesitant to make an impulsive move higher towards the 23.6% Fibonacci level at $0.00000834. A breakout above this can be seen as confirmation of a trend change.
Solana (SOL) – Rising Against The Crypto Odds
Solana (SOL) made a splash in the crypto market last week, recording an impressive 39% price increase over the last 12 days. This surge propelled SOL to the critical resistance level represented by the 200-day exponential moving average (EMA).
Breaking through this level has been a persistent challenge for SOL since April 2022, but recent developments offer hope for a potential breakthrough. At press time, the SOL price overcame the 200-EMA at $21.98, trading at 22.07. A daily close above this price level would be massively bullish.
SOL’s rally is particularly noteworthy, considering the setbacks it faced due to the FTX drama and the SEC’s classification of it as a security. Should the 200-day EMA be breached, the 50% Fibonacci retracement level and the yearly high at $27.00 could serve as the next targets for an extended rally, which could give investors another 22% profit, as detailed in our last analysis.
Polygon (MATIC) – New Momentum
Recent developments have sparked interest and potential opportunities for investors. The announcement of former Chief Legal Officer Marc Boiron as the new CEO has generated positive sentiment within the community. On-chain data indicates a significant spike in social volume following the news, suggesting increased attention and potential bullish sentiment for MATIC’s price.
From a technical standpoint, MATIC has seen a 40% increase since its local bottom in June. The price currently sits below the 23.6% Fibonacci retracement level, and a breakout above this level could potentially drive MATIC towards the 200-day EMA and the 38.2% Fibonacci retracement level, offering a 22% rally. However, breaking the resistance at the first Fibonacci level at $0.756 is a crucial step to watch for potential upward momentum.
Please note: The analysis and observations in this article should not be considered financial advice. Cryptocurrency investments carry inherent risks, and readers are urged to conduct thorough research before making any investment decisions.
Featured image from iStock, chart from TradingView.com