Bitcoin’s current consolidation above $30,000 is both assuring and nervy. Standard market structure usually dictates that consolidation after a bullish rally, is often an indication of a continued trend. Yet, due to a prolonged bearish market that is slowly losing its grip, bulls are still fighting to establish dominance. While Bitcoin has breached its daily bearish structure, two particular altcoins have demonstrated strong, weekly bullish behavior. In this article, we will assess Solana and Compounds’ current market trend and how it may lead to future valuations.
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Solana (SOL)
Solana is the out-and-out performer over the past week. Outperforming the rest of the market, SOL is boasting a 16% hike weekly hike at press time. However, the pattern on its weekly chart is even more impressive. As illustrated above, the asset is currently exhibiting the formation of an Inverse Head and Shoulder pattern. With its present weekly candle above the declining resistance, it is currently awaiting a bullish close. An inverse H&S pattern on a long-term time frame is incredibly bullish.
Considering, the asset closes above the declining resistance(white line), Solana may rally by 40%-76% in the coming weeks. A yearly high range of $30-$38 will be attainable, for a token that was all but finished during the FTX fiasco.
Compound (COMP)
Compound or COMP token is currently one of the top 24-hour performers at press time. With a rise of 10.2%, the altcoin is priced at $65, but it is currently ranked 95th with a market cap of $444 million. However, it might change over the course of 2023.
According to its weekly outlook, COMP has completed a triple bottom pattern which is majorly bullish on a weekly time frame. The price currently consolidates above the threshold(white line), which is giving further bullish confirmation to the pattern. An uptrend from its current price range, may witness COMP undertake a massive rally between 100%-188%. A lack of resistance is evident between these price points i.e. $65 to $120 and $165.
Overall, both Solana and Compound are displaying significant strength at the moment. However, these analyses should be further combined with other factors such as an improving or declining macroeconomic structure, swan events, and the health of the market. An ideal situation would dictate the above targets mentioned, but it may take place over the next few weeks or next few months, there isn’t a set timeline for such long-term narratives.
As always, Do Your Own Research.
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