With Bitcoin still trying to surpass the $35,000 level, analysts have tagged Aave (AAVE), Solana (SOL), The Sandbox (SAND),
AAVE stalled after surging 86% earlier this year, trading sideways for most of 2023.
However, new upward momentum emerged in mid-September, pushing AAVE towards the $100 resistance level for the first time since August 2022. A breakout of this key barrier after months of consolidation suggests further upside may be on the cards if the bullish momentum continues.
AAVE appears well positioned to re-reach previous highs by the end of the year, supported by its widely accepted status as a leading decentralized finance protocol.
With core utility in crypto lending and liquidity pools, AAVE will benefit as DeFi adoption accelerates.
Solana (SOL) also had a strong October, with prices surging nearly 80% to hit a high of $38.62 on October 31. A potential factor driving the price is Solana's annual Breakpoint conference from October 30 to November 3, where several important announcements were made.
This includes the launch of the Firedancer testnet, collaboration with Google Cloud, and increased institutional interest reflected in Solana's TVL spike to $438.28 million at the time of writing.
Solana's positive development and strong price movements indicate promising future growth prospects.
Lastly, The Sandbox's SAND token surged over the past week after revealing a Mastercard integration enabling SAND payments and the FallO'ween event.
Even though SAND lost more than 95% of its value after rallying in 2021, analysts remain optimistic thanks to The Sandbox's continued partnership.
SAND broke above its 100-day exponential moving average recently, testing resistance at $0.36.
With its unique metaverse offering, The Sandbox may be a strong prospect if its ecosystem develops.
In addition to the ongoing potential of AAVE, Solana, and The Sandbox.
Given crypto's bullish momentum in Q4, the analyst highlighted AAVE, Solana, Sandbox, Minetrix, and Kombat as prospects to watch closely.
We will analyze the technical and fundamental factors driving these top prospects to identify the best cryptos to buy now.
AAVE Targets $95: Can It Break Resistance?
AAVE price has shown a striking bullish breakout, following a symmetrical triangle pattern formed from October 24 to October 31.
This breakout was punctuated by an upward move of 9.48% yesterday, putting AAVE on track towards its immediate resistance level.
AAVE is currently trading at $92.61, representing an increase of 3.87% so far.
Although the recent upward movement is encouraging for investors, a potential bearish RSI divergence has emerged, indicating a possible trend reversal.
The 20-day EMA for AAVE is at $78.54, well above the 50-day EMA ($71.24) and 100-day EMA ($67.82).
In general, a crossover of the short-term EMA above the long-term EMA is considered a bullish signal.
However, the current bullish movement in AAVE prices has the potential to contrast with the RSI which fell slightly from yesterday's 75.90 to 71.93 today.
This bearish divergence could signal an upcoming price correction.
Meanwhile, the MACD histogram increased to 1.18 from yesterday's 0.92.
This increase, which usually indicates bullish sentiment, supports the upward trajectory of AAVE price.
However, the strengthening of the bullish trend by the MACD contradicts the RSI's subtle warning of a potential price reversal.
AAVE is currently facing a horizontal resistance zone ranging from $92.03 to $95.55.
Overcoming this resistance could signal a continuation of the bullish trend.
On the downside, the closest support can be found at the previous swing high level of $88.
If this level fails to hold, AAVE may find strong support in the horizontal zone between $83.47 and $84.60.
AAVE price has shown promising bullish behavior, but technical indicators hint at an uncertain future.
The bullish breakout and rising MACD histogram contrast with a potential bearish RSI divergence, indicating that the market may be in an overbought condition.
Investors should remain cautious and be prepared for potential AAVE price volatility.
The key for traders is the $95.55 resistance level. A sustained break above this point could confirm the continuation of the bullish trend.
Conversely, a drop below the $88 support level might validate a bearish RSI divergence, potentially leading to a price correction.
Therefore, traders should monitor this level carefully while considering their next move in the AAVE market.
Solana SOL Price Drop: Is It Time to Reassess Bullish Momentum
SOL price has been on a strong upward trajectory in recent weeks, surging more than 23% to hit a new year-to-date high of $46.90. However, after this impressive rally, the price seems to be starting to weaken today.
SOL price currently stands at $39.96, marking a 2.89% decline so far.
From a technical perspective, SOL price exhibits several important patterns.
The 20-day EMA for SOL price is currently $31.62, well above the 50-day and 100-day EMAs of $26.85 and $24.35 respectively.
This is usually a bullish pattern, but the recent price decline warns investors to interpret it wisely.
SOL's Relative Strength Index (RSI) is currently at 79.13, down from yesterday's 84.58.
Although the RSI is slightly lower today, it is still in overbought territory (above 70), indicating that SOL price may be experiencing short-term selling pressure.
The MACD histogram remains unchanged at 1. This indicates that the bullish sentiment is still there, but the momentum may slow down if the MACD line crosses below the signal line in the coming days.
Looking at key price levels, SOL price is facing a horizontal resistance zone between $46.58 and $48.44.
However, with the price experiencing a deeper retracement today, the 0.236 Fib level of $40.80 could possibly become the closest resistance level in the following days.
On the support side, the immediate support is the 0.236 Fib level at $40.80, but with the decline in SOL price today, it seems that this level will not be able to hold.
The next significant support level lies between $37.04 and $39.95. This zone meets the 0.382 Fib level at $37.02, making it a critical level to watch.
Keeping the above in mind, investors and traders should monitor the SOL price closely in the coming days.
If SOL price can find strong support and bounce above the $40.80 level, this may attract further buying momentum.
However, if the $37.02 support level does not hold, we could see a deeper correction in SOL price.
As always, trading within the specified risk limits and waiting for clearer signals would be the wisest strategy in this scenario.
SAND Sandbox Price Consolidates When Bulls and Bears Clash
Sandbox (SAND) price set a new multi-month high today, hitting an intraday peak of $0.38 before trading at $0.3602 at press time.
While still up 1.01% on the day, SAND faces immediate resistance just above its current price level.
With SAND price unable to break the $0.3623 to $0.3698 resistance zone over the last four trading days, buyers are desperate for a convincing breakout to propel the coin to its next leg up.
However, caution may be warranted until SAND can close firmly over this stubborn barrier.
Looking at technical indicators, the short term is starting to strengthen compared to the long term for SAND.
The 20-day EMA is currently at $0.3282 while the 50-day EMA is slightly lower at $0.3194.
With the faster moving average crossing above the slower moving average, this indicates increasing momentum in the near term.
At the same time, the RSI for SAND edged up to 69.83 from yesterday's reading of 68.72.
While not yet in overbought territory above 70, the steady rise suggests that upward price momentum may be underway despite the headwinds.
The MACD histogram tells a similar story, printing at 0.0049 compared to 0.0051 yesterday.
Although the indicator is slightly down, positive values reflect increasing bullish momentum.
With SAND struggling to reach its strongest overhead resistance, buyers may need strong buying volume to absorb selling pressure and push SAND prices to new highs.
On the downside, initial support emerges around the 100-day EMA at $0.3421. Further support lies between $0.3357 and $0.3404, where SAND found buyers on several recent pullbacks.
Although technicals currently favor upside, traders may want to wait for a convincing break above $0.3698 before entering new buy positions.
Otherwise, a move below the 100-day EMA could signal waning momentum and potential future SAND price consolidation.
It is recommended to patiently wait for a catalyst or definitive chart signal at this time.
With AAVE, Solana, and Sandbox trading near key levels, analysts also advise to watch out for breakouts from low-profile cryptocurrencies.
Note: This is not financial advice. Purchase or sell specific coins. Please do your own research and analysis to buy the coins you want.
