ADA and SOL Price Analysis as of January 23, 2024
Today's crypto market saw Bitcoin continue its downward trend, hitting a new local low below $39,000. This analysis covers the current market situation for altcoins Cardano (ADA) and Solana (SOL) as of Tuesday, January 23.
Cardano (ADA)
ADA, like many other altcoins, is currently in a downward trend. The asset has recently broken through another support level, reaching a local low of $0.450.
Given its strong correlation with BTC, a further decline in ADA appears likely. Potential support levels for sellers might be found at $0.430 and in the range of $0.397–$0.416.
For a reversal of this downward trend, BTC needs to stabilize above the resistance level of $42,000, which could positively influence altcoins, including Cardano. In such a scenario, ADA might test resistance zones at $0.471–$0.486 and $0.517–$0.536, possibly signaling a return to an upward trajectory.
ADA chart on the H2 timeframe
Solana (SOL)
Although Solana's market trend mirrors the general bearish sentiment, its price has shown more resilience compared to other altcoins amid BTC’s decline. Currently, SOL is trading within the support zone of $79.1–$84.6.
The likelihood of further correction is high. The next buying opportunities may emerge at $73.1 and within the range of $61.8–$68.9, where a market reaction could temporarily halt the downtrend.
Should BTC regain bullish momentum, Solana could seize the opportunity to climb. To achieve this, SOL needs to rise above resistance levels at $91–$95.6 and $102.1–$107.3. This could pave the way for SOL to continue its growth trajectory and potentially set new yearly highs.
SOL chart on the H3 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
