The cryptocurrency market experienced a significant recovery in 2023, led by the top cryptocurrency, Bitcoin (BTC), which gained 160% year-to-date (YTD).
During this bull market, many altcoins saw substantial gains. Let’s take a closer look at the most notable price rebounds of 2023.
Solana (SOL) had the biggest comeback of the year, rising nearly 1,215% from its low point of $8.27 in December 2022. It also saw a 485% increase against Bitcoin from its low point of 0.00004952 BTC on June 5.
SOL had experienced a 95% decline in 2022, making it one of the biggest losers that year, primarily due to its exposure to FTX. However, in 2023, Solana’s resilience during FTX’s bankruptcy asset sales, significant growth in decentralized application usage, increased market demand and network activity, and improved network stability contributed to its rise. Additionally, Solana’s focus on mobile accessibility and efficient transaction capabilities attracted new users and developers, further strengthening its market position and adoption.
Although Solana’s price chart technicals suggest a bearish outlook for the beginning of 2024, with the weekly relative strength index (RSI) remaining above 70 and struggling to close above its 0.5 Fibonacci retracement line near $132, the second half of the year may see an uptrend for SOL after testing its multiyear ascending trendline support. This could potentially lead to a climb to its previous record high of around $265 by the end of the year.
Tron (TRX) experienced a crash of over 98% during the crypto market’s bear cycle from 2018 to 2020. However, since hitting a low point near $0.0076 in March 2020, TRX/USD has risen over 1,270%, including a 100% rally in 2023.
Tron’s price gains align with its strong performance in the decentralized finance (DeFi) sector. The total value locked (TVL) across the Tron ecosystem has increased from nearly 30 million TRX in April 2020 to over 76 billion TRX (~$8 billion) in December 2023. Tron’s engagement in token-burning activities, along with its role as the biggest blockchain for stablecoin Tether (USDT), has also contributed to its price rise.
Looking ahead to 2024, Tron’s price trends will depend on broader factors such as a potential Bitcoin exchange-traded fund approval, Bitcoin’s halving in April, and the overall global economy. If TRX decisively closes above the triangle’s upper trendline on the weekly chart, the $0.20 target may be within reach. On the other hand, a break below the triangle’s lower trendline could result in a price crash towards $0.056.
Avalanche (AVAX) saw a price increase of nearly 370% from its low of $8.65 in September 2023. This rebound followed a 94.25% crash during the bear market.
Interestingly, Avalanche’s price rise coincided with the unlocking of nearly 19 million AVAX tokens in the second half of 2023. Despite this, the network metrics for Avalanche show weaker underlying demand, with the TVL across the ecosystem dropping from around 55 million AVAX in September to approximately 23 million AVAX in December.
As for the price outlook for AVAX in 2024, there is a growing divergence between rising prices and declining volumes, indicating a lack of strong conviction behind the price movement. This suggests that fewer traders are participating in the market, and those who are may not fully believe in the sustainability of the price rally. AVAX’s price has stalled at its 0.618 Fibonacci line near $50.50 as resistance, and a correction towards the next Fibonacci line of $29.50 is likely to occur in the first quarter of 2024. A further decline below $29.50 could see AVAX drop to its 50-week exponential moving average (EMA) near $20.16 as the next bearish target.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.