Bitcoin‘s (BTC) rise above $44,000, albeit briefly, pushed the total value of the cryptocurrency market above $1.65 trillion. Bitcoin‘s rise also led to significant increases in the prices of many altcoins. Especially Solana (SOL) and Ripple (XRP) became the most prominent altcoins of the year with their price increases. Analysts expect the rise in BTC, SOL, and XRP to continue.
Analyst: The Rise in Bitcoin Will Continue
The crypto market as a whole saw a significant recovery throughout the year, led by Bitcoin, and the largest cryptocurrency has made significant upward movements in the last few days. Bitcoin’s price surpassed the $40,000 level on December 4th and the upward trend did not stop there. In the following days, BTC rose above $44,000, a level not seen since the spring of 2022. Bitcoin’s rise above $44,000, even briefly, pushed the total value of the cryptocurrency market above $1.65 trillion.
Since then, Bitcoin has retraced and paused its rise, but there are many factors indicating that a strong rise will continue in the short term. According to the on-chain data provided by CryptoQuant, the outflows of BTC from cryptocurrency exchanges have significantly exceeded the inflows in the last few days. The fact that investors are choosing to store their BTC rather than selling it eliminates sudden selling pressure and is generally considered a signal of an impending rise.
Some experts argue that the current market dynamics are much more favorable than those during the bull run in 2021 and could pave the way for a much stronger rise in Bitcoin. Experienced cryptocurrency analyst Checkmate pointed out the significance of the $44,000 level by saying, “The $44,000 level is quite important. The on-chain data is not even at 2019 levels right now” and added, “HODLers are not selling. They are waiting for higher prices.”
Solana (SOL) and Ripple (XRP) Investors Should Buckle Up
With the rise of Bitcoin, one of the altcoins that has caught investors’ attention recently is Solana‘s SOL. It has been the best performing altcoin in the past few months and its price almost reached $70 in mid-November. However, SOL could not maintain this momentum and dropped to $54 at the end of last month. Since then, the altcoin has been fluctuating between $55 and $65.
Nevertheless, some important on-chain data indicates that SOL may be on the verge of a new rally. Data provided by DefiLlama shows that the total value locked (TVL) in the Solana network has recently increased. As of today (December 7th), the TVL stands at about $700 million, which is the highest level reached since November 2022.
In addition, experienced analysts like Crypto King and Jacob Canfield foresee a bright future for SOL. While Crypto King expects the price to reach $300 in the long term, Jacob Canfield anticipates a rise of up to $1,000.
On the other hand, Ripple’s XRP, although not as significant as Bitcoin and other altcoins, has recently gained some traction. The altcoin is trading at $0.64, with an increase of over 85% since January 1st. According to many analysts, XRP is on the verge of reaching an all-time high. Cryptocurrency analyst Fiery Trading pointed out the formation of a bull flag pattern on the altcoin’s price chart and expects XRP to rise up to $25 by the end of next year, saying:
“This massive formation will break at some point in 2024, and the most likely move, considering Bitcoin’s halving, is an upward break. I have set my target price for the upward break at $25.”
The analyst behind the popular crypto-focused YouTube channel CryptoTV also believes that XRP is ready for a rally and expects the altcoin to reach $0.83 in the short term.
