Markets went through a bloodbath in the last couple of months, and many traders now look for the best opportunities to make high returns. This article will cover possible moves of three altcoins, so let’s look at Solana, Dogecoin, and Cronos.
Solana (SOL) is a well-known cryptocurrency as it is in the TOP 10 cryptos according to its market cap. It is one of the strongest rivals of Ethereum as it has a similar purpose, but it is significantly faster and cheaper to make a transaction on its network. Moreover, many non-fungible token (NFT) projects prefer to launch on the Solana network over Ethereum, and many individuals expect this coin to recover from this bear market sooner or later.
Solana fell all the way from $260 to $26, totalling a massive 90% drop from its all-time high (ATH) level. While the destructive drop stopped at $26, there was no notable pullback upward. However, a continued pullback to a resistance at $80 is very probable. If traders enter a buy position well at $30 or $40, there is a 100% to 150% potential return in just a few months. SOL could get there by September or October 2022, if the crypto market turns around.
Memecoins were one of the cryptocurrency types that got hit by the bear market the hardest. After heading to $1 and almost reaching $0.75, Dogecoin (DOGE) fell to about $0.05 in a drastic downtrend. Now there is an opportunity to either bounce up by 100% or descend to a new low. The trend line shows a triangle pattern that could send DOGE upward to a moving average (EMA200) like the market did three times this year.
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However, if the trend line breaks down, Dogecoin might be headed to a new low below $0.05, probably somewhere between $0.03-$0.04. Either way, there is a chance for a significant movement in both ways. As Bitcoin is the primary indicator of all altcoins, it is necessary to watch it to determine the next move. It is straightforward because if Bitcoin goes up, DOGE will follow, and vice versa.
Cronos (CRO) is one of the biggest crypto exchanges in the world, and it saw the biggest uptrend at the end of 2021 when it grew by 1,000% to almost $1. On the contrary, all gains were deleted as Cronos fell to nearly $0.09 in the next six months. Now it is sitting at strong support, broken a crucial trend line, and many traders are looking for potential gains.
CRO stopped at important support from the last summer of 2021 and bounced back up. The broken trend line signals a possible reversal to the upside and a target to the closest resistance, the black line. So the potential return from here is about 100% to $0.3, but the market could still go back and retest the $0.09 support, which is a possible drawback of 33%. Thus the risk-reward ratio (RRR) is 1:3, which could be a solid trade.
It is important to remember that market sentiment is still nasty, and altcoins go where Bitcoin says. So make sure you enter trades after pullbacks downwards and with some form of confirmation to your trade other than what you find in this article.