The crypto market is on the up over the last week or so, with Bitcoin rallying more than 15%, and some altcoins doing even better. A pull-back may be on the cards in the short term, but once this is over, $SOL, $BNB, and $WIF, have the potential to be excellent plays going into the next weeks and months.
The crypto recovery certainly looks to be on. There is still the possibility that the recent rally could be strongly rejected from current levels, and that the whole thing could be one big bull trap. However, the odds are that any bearish price action from here could be short-lived, and that Bitcoin’s bullish surge will succeed in lifting all boats.
Three altcoins showing future promise
Among those boats are three altcoins that show much promise. Firstly, Solana ($SOL) is likely to pump into the latter part of the year, if the Firedancer validator client is integrated without major issues. Binance coin ($BNB) could potentially make hay as the bull market drives the retail crowd to the top exchanges; and Dog Wif Hat ($WIF) could maintain its run as the top performing memecoin for the last 12 months.
$SOL breaks out
Source: TradingView
Analysing $SOL in the daily time frame, it can be noted that a breakout has taken place on Monday. This is following the flipping of the $142 resistance into support on Sunday. With the short term Stochastic RSIs topping out, it remains to be seen if the $SOL price can remain outside the triangle pattern. $SOL would need to have a daily candle close above, in order to confirm this break.
Looking further out, $175 and $190 are strong resistance levels, before the local bull market high at $210, and the all-time high at $260. If Firedance is integrated without major snags, and it lives up to its lightning fast speeds and massive scaling improvements, reaching the all-time high would certainly be possible.
$BNB bounces from support - now at resistance
Source: TradingView
The $BNB price has bounced from the support level at $489, which also coincided with the rising 200-day moving average. Since then, $BNB has flipped $532 from resistance into support, and now, the price finds itself up against the $561 resistance. Given that short term time frame stochastic RSIs are topping out, a rejection from this resistance might be expected.
Either of the supports, or the 200-day MA could be bounce areas. Look for $BNB to break through the downward sloping trend line and the resistance at $583 over time. $BNB has already broken its all-time high, so price discovery awaits above $720.
$WIF establishes a support floor
Source: TradingView
$WIF has come a long way down since achieving $4 at the end of May. However, $1.54 looks like being a relatively strong base for $WIF to make its way back up from here. The downward sloping trend line was broken on Monday, and $WIF will try to hold above this.
However, new downward momentum could bring the price back to the trend line, and even back to the $1.54 base again. Looking beyond this into the medium term, $WIF could take full advantage of the next Bitcoin surge to the upside. If $BTC is able to hit its all-time high again, expect $WIF to at least be able to do the same, and hit $4.85.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
