The cryptocurrency market is showing signs of recovery, with Bitcoin on track to return to the $70,000 milestone. Among the top 10 cryptocurrencies by market capitalization, Solana (SOL) and Avalanche (AVAX) have the best price performance, achieving the largest gains in the last 24 hours.
solarium (SOL) is currently the best performing token in the top 10, with a +9% rally in the last day. According to data from Coinmarketcap, the solana price rose from $176 to $192, continuing its rally since the weekend. The outlook for the coin remains bullish, with it consistently performing above its EMA10 (10-day exponential moving average) through 2024 to date, indicating that investors who bought and held the coin for just over a week They have generally seen profits.
However, Solana may be approaching a decisive zone, with potential for a correction or trend reversal at worst. The Squeeze Momentum indicator (a metric that measures where an asset is in the market cycle) suggests a possible shift to a bearish stance, while the ADX (average directional index) indicates that the uptrend is slowing. The RSI (relative strength index) has fallen from 86 to 63, indicating a more balanced market sentiment, although it remains bullish. Traders considering holding the coin for longer periods of time should be cautious as a correction may be on the horizon.
avalanche (AVAX) is also seeing strong price performance, with the Avalanche ecosystem's native cryptocurrency rising from $53.60 to $58.30 in the last 24 hours, an increase of +8.87%. Although he avalanche price is still down 10% in the last seven days, its uptrend continues, and the gap between EMA10 and EMA55 widens over time.
The Avalanche Foundation efforts to stimulate its memecoin ecosystem with a liquidity injection program may be contributing to the positive performance of the currency. However, like Solana, Avalanche is experiencing some near-term market uncertainty.
The Squeeze Momentum indicator also points to a possible bearish correction here, and the RSI is only slightly bullish at 62, with the ADX at just 23, probably at the lower threshold of what can be considered a strong trend. This volatility can present opportunities for scalpers and day traders, but swing traders should be careful.
Beyond the cryptocurrency market, global stock markets experienced a small bearish correction earlier in the week. The S&P 500 is down -0.12%, the Nasdaq is down -0.14% and the UK FTSE100 is down -0.05%. The Shanghai Composite is down -0.9%, while European markets are performing slightly better, with the Spanish IBEX up 0.7%, the French CAC40 up 0.14% and the German DAX up 0.28 %.
Overall, markets appear stable on Monday, with no significant moves in either direction.
Edited by Ryan Ozawa.
