Altcoin
Are Ethereum (ETH) and Solana (SOL) Ready to Dominate the Cryptocurrency Market?
The cryptocurrency market has seen strong bullish price action over the past day, resulting in BTC price exceeding the threshold of 65,000 dollars. Furthermore, the altcoin leader, ETH price, successfully reclaimed the $3,000 mark, indicating an increase in bullish sentiment in the crypto space.
On the other hand, the Solana token successfully surpassed its important resistance level of $155.25 by adding 14.26% to its portfolio in the last 24 hours. With a new influx of bullish sentiment into the cryptocurrency market, will Top Layer-1 (L1) tokens outperform the crypto space this month?
The Ethereum token is on the verge of a major breakout:
After recording significant bullish price action adding 80.80% in the month of February, the ETH price faced a rejection at $4,094.75 on March 12. Since then, the price has been trading in a descending channel pattern on the 1D time frame, indicating strong bearish sentiment in the cryptocurrency sector.
TradingView: ETH/USDT
However, following the market rebound, the Ethereum price successfully regained the $3,000 threshold. Furthermore, the price is on the verge of breaking above the resistance trend line, highlighting increased buying pressure in the cryptocurrency market.
The technical indicator, MACD, shows a steady flat line on the 1D time frame, indicating weak price action for the altcoin leader in the market. However, the averages show a bullish convergence, suggesting a positive outlook for ETH price in the near future.
If the market sustains the price above the $3,000 support level, the bulls will prepare to test its $3,250 resistance level in the coming time. However, bearish price action will push the price below the crucial $3,000 support level this week.
Solana price suggests bullish price action:
THE Price of the SOL coin has consistently shown a higher low on its chart, indicating an increase in excessive buying pressure in the cryptocurrency market. Furthermore, the price is on the verge of breaking out of its resistance zone, highlighting a bullish outlook for the altcoin.
TradingView: SOL/USDT
The Moving Average Convergence Divergence (MACD) shows a steady increase in the green histogram, highlighting an increase in buying/selling pressure in the cryptocurrency sector. Furthermore, the averages show a bullish curve, suggesting that the price will continue to gain value in the coming times.
If the bulls break out of the resistance zone, the Solana price will undergo a breakout rally and attempt to test its $200 upper resistance level. On the downside, if the bears regain momentum, the SOL price would collapse towards the lower support level of $126.75 this month.
Chain analysis:
At the time of writing, the Total Value Locked (TVL) on the Ethereum chain was $131.959 billion, a +3.47% change from $127.528 billion yesterday. On the other hand, the Solana chain has a TVL of $10.556 billion with an increase of $900 million (+9.32%) in the last day.
Source: DefiLlama
Furthermore, the Ethereum chain has added $8.516 billion (6.89%) since the beginning of the month, while the Solana chain has added $2.043 billion to its valuation over the same period.
Currently, Ethereum has 386,161 active addresses with 1.2 million TXs on its chain. On the other hand, the Solana chain has 841,149 active addresses, 117.82% more than Ethereum and 27.52 TX on its chain.