The best cryptocurrency claims for January are that the Ethereum price will outperform Bitcoin. Also, one of the assumptions is that Solana (SOL) will be one of the biggest losers. We have included ETH, BTC and SOL analyzes in this article.
This cryptocurrency will lag behind Ethereum
The ETH/BTC pair broke out of a descending resistance line (white) on July 27 and reached ₿0.086 on September 7. It subsequently returned on September 22 to verify it as a basis (green icon). Since the confirmation, Ethereum price has been trading inside the symmetrical triangle, which is considered a neutral pattern. However, a breakout from it would be the most likely scenario, as it occurs following an upside move. A break that crosses the height of the entire triangle results in a height of around 0.094₿. There are two more readings that support the possibility of a break. First, ETH price bounced off the 0.5 Fib retracement reinforcement level at ₿0.067. However, it created a long bottom wick in the process (green circle). As long as the 0.5 Fib retracement continues above the support level, the trend can be considered bullish.
Second, the move within the triangle is precedent for a complex WXY correction (black) that has been completed. If so, a breakout from the triangle would be the most likely scenario. However, the daily RSI is bearish as it failed to break out of the descending resistance line and was rejected by the 50 line. As a result, whether ETH price breaks out of the triangle or closes below the ₿0.057 region will determine the ETH crypto forecast for January.
Bitcoin dominance rate will drop
BTCD is heavily influenced by ETH movements as it is the largest altcoin by market cap. However, it also acts on changes in the rest of the crypto market. BTCD price action is currently inside an ascending parallel channel. These types of channels often contain corrective actions. This means that the most likely scenario would be a break with it. Subsequently, the resistance line of the channel coincides with the 0.382 Fib retracement resistance level, increasing its legitimacy. So the movement within the channel is like an ABC corrective structure.
Finally, the daily RSI is very overbought (red circle). When this happened earlier, a sharp downward move followed. If BTCD leaves the channel, it could drop to its all-time low of 36%. On the contrary, a break above the resistance line of the channel indicates that the trend is bullish. Therefore, if the move does materialize, this crypto prediction will be bullish for most of the crypto market excluding Bitcoin. As the Bitcoin price is stuck in a bear market, it is possible for the BTC price to fall as altcoins fall by a smaller percentage.
SOL price will exhibit a decline
The SOL token price has fallen since reaching an all-time high of $259.90 in November 2021. The bearish action reached $9.65 on Dec. 28. During the downtrend, Solana price dropped below the long-term $29 reinforcement. However, the decline has accelerated even more in the last 24 hours. The first decisive bearish sign is that the nearest reinforcement area is $4.30, down 58.6% from the current mark. It is possible for the SOL price to reach this level by the end of January, as there is no random break in the middle of the current price and the $4.30 support area.
The second decisive bearish sign is when the weekly RSI drops below 30 and is bearish without a bearish bias. As a result, the most likely SOL crypto assumption is a correct downward move into this area. Solana price will need to regain the $29 resistance area for the long-term trend to turn bullish.