Gareth Soloway, chief market strategist, has recently provided insights into the price action of four major altcoins: Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX). His analysis revolves around key support and resistance levels that could impact the direction of these cryptocurrencies in the coming weeks.
Ethereum is currently facing a critical test as it trades within a series of parallel channels. The focus is on the immediate support level near $4,350. Soloway emphasizes the importance of this level, as a confirmed breakdown could potentially lead ETH towards $3,750. However, if the support holds, Ethereum could aim to retest the highs above $5,000, with a potential target around $5,500.
Solana, on the other hand, maintains a strong setup according to Soloway. The altcoin recently broke above the $205–$215 range and continues to form higher highs and higher lows. As long as Solana stays above $235, the outlook remains positive. A potential move back to its previous all-time high near $295, or even surpassing $300, is on the cards. In case of a trend reversal, support is expected in the $215–$205 zone.
XRP’s chart displays a more neutral pattern compared to Ethereum and Solana. With support near $2.95, caution is advised as lower highs indicate a potential downside risk. A breach below $2.95 could pave the way for a descent towards $2.75–$2.67. Conversely, a breakout above $3.12 would signify strength and could trigger a price increase of 10–20 percent.
Avalanche experienced a significant rally from $26 to $36 before encountering strong resistance at the $36 level. Soloway anticipates a short-term pullback for Avalanche, which could create a new buying opportunity if the support level holds.
It is important to note that these projections are short-term in nature, spanning over weeks or months. Monitoring clear support and resistance zones remains crucial for assessing the price movements of these altcoins accurately. Stay tuned for further updates on the cryptocurrency market trends.