SOL and DOGE: Altcoin Analysis for December 22, 2023
While Bitcoin's trading pattern remains sideways and its market volatility has notably decreased in the past two weeks, we bring you a detailed review of the market situation for Solana (SOL) and Dogecoin (DOGE) as of Friday, December 22.
Solana (SOL)
The stabilization of Bitcoin in a sideways trend has acted as a catalyst for Solana's growth. This December, the asset has appreciated by 70%, reaching an annual high of $99.
Considering the increasing popularity of the Solana blockchain and the rise of tokens associated with this ecosystem, SOL's ongoing upward movement is seen as a primary scenario. Following the breach of the psychological $100 mark, the next target for buyers could be around $110. With the coin's historical high at $260, SOL retains the potential for further upward momentum.
No significant correction is anticipated for SOL shortly. Before experiencing more growth, SOL's price may dip to support levels around $79-$86, $73.18, and $61.80-$68.80, potentially offering a favorable buying opportunity in the spot market.
SOL chart on the H2 timeframe
Dogecoin (DOGE)
Over the past two months, Dogecoin's price has increased by 100%, a relatively modest achievement compared to other altcoins, some of which have seen 300-400% growth. With the BTC chart maintaining an upward trend, DOGE also stands a chance for further rise.
To achieve this, the coin needs to break the resistance level of $0.097 and retest the seller zone between $0.102 and $0.107. If buyers can sustain above this range, DOGE might aim for a new local high near $0.115.
DOGE may also face a correction, especially if there's a downturn in Bitcoin's price. In such a scenario, DOGE could decline to the support zone of $0.0837-$0.0897 and test the buying strength at $0.0797.
DOGE chart on the H4 timeframe
Typically, weekends see minimal volatility in the cryptocurrency market, and a similar trend is expected this time.
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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) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the price movement between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K β $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β 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:
