The recent pullback in Solana (SOL) has caused a major shift in the cryptocurrency market. However, analysts remain bullish on the coin and see it as a buying opportunity. Meanwhile, both Stellar and new altcoin Cutoshi have seen significant growth.
Solana Dip provides a great entry point
Solana (SOL) was one of the best performing coins in this cycle. However, a recent correction shook the coin, causing it to drop in the rankings. Solana has fallen 10% in the past seven days, from $253 to $227.
The big news this week is that Ripple (XRP) surpassed Solana in market cap. After XRP hit $2, it surpassed Solana and Tether (USDT) to rank third among all crypto assets. This came as a shock to Solana traders as it would have been difficult for SOL to surpass Tether.
Despite facing setbacks, analysts remain optimistic about Solana. For example, Rekt Capital stated that if Solana confirms a support level of $250, its price could reach $300 by 2025. The relative strength index (RSI) is at a comfortable level of 51, indicating that Solana is experiencing strong growth momentum. However, other indicators are mixed, leading to a neutral overall outlook.
Stellar has gained significant returns
Stellar (XRM) has seen substantial growth in recent weeks, making it one of the best-performing tokens during this period.
Reports indicate that major institutions are paying attention to Stellar, which has seen a price increase of 478.36% in the past 30 days.
In addition to the rebound in the cryptocurrency market, the growth is also driven by a recent filing from Grayscale Investments. The document shows that the company's XLM trust has seen a net asset growth of 10% this fiscal year. This indicates strong institutional interest in Stellar.
The reaction to the news has been very strong, with traders pushing the token price to new highs. Stellar founder Jed McCaleb shared what he believes are the reasons for the growth. He noted that Stellar's daily trading volume is ten times that of Ethereum, and called it one of the most undervalued projects to date.
However, this tremendous growth cannot continue indefinitely, and analysts now believe Stellar will enter a period of retracement. However, if it breaks through the resistance level of $0.60, the token may soon test $0.70. On the other hand, if it falls below the support level of $0.40, it could drop to $0.28 or $0.22.
Cutoshi shows interest in DeFi
The significant growth of Stellar indicates that investors are looking for projects with strong DeFi utility. Recent interest in the memeFi token Cutoshi (CUTO) has driven this situation. In less than a month since its launch, the token has raised over one million dollars in investment.
As of December 2, Cutoshi's presale investment amount has reached $1.221 million, indicating strong interest in DeFi projects. Notably, while Cutoshi has a cat mascot, it focuses on building a user-operated DeFi ecosystem. The project is developing a multi-chain DEX aimed at breaking down trading barriers.
The combination of memes and DeFi aims to allow more investors to access DeFi. As the cryptocurrency market is in a bullish phase, it is an ideal time for traders to start using decentralized platforms like Cutoshi and to hold their tokens.
