Bitcoin continues to trade near the $43,700 level, indicating that sellers are showing slight resistance. However, selling pressure on Bitcoin remains weak as traders anticipate the approval of one or more spot Bitcoin exchange-traded funds (ETFs) by the SEC in January.
A potential spot Bitcoin ETF approval could initially lead to a knee-jerk reaction, but thereafter, investors are likely to shift their focus to the actual demand for ETFs. Trading firm QCP Capital stated in a market update that the initial demand for the BTC Spot ETF might fall below market expectations. This could prompt investors to take profits, triggering a pullback. What can be expected from popular altcoin projects such as SOL, XRP, and AVAX during this process?
Solana Technical Analysis
Solana started an upward move from the 20-day EMA level of $74 on December 18th and reached $100 on December 22nd, indicating aggressive buying by the bulls. The SOL/USDT pair is likely to face selling around $100, but if the bulls do not give up much ground, the uptrend is likely to continue. If buyers push the price above $100, the pair could start its journey towards $143.
Even though the recent rally has invalidated the negative divergence, the RSI remains in the overbought zone. This suggests that the rally might have overheated in the near term and could result in a minor correction or consolidation. The first support on the downside is at $80, followed by the 20-day EMA level. A break below this level would indicate that the bulls have lost control.
XRP Technical Analysis
XRP continues to trade between $0.56 and $0.74, indicating indecision between buyers and sellers. Both moving averages have flattened, and the RSI is near the midpoint, suggesting that the range-bound action could extend for a few more days.
If buyers push the price above the moving averages, the pair could rise to $0.67 and then to $0.74. Sellers are likely to defend this level vigorously. Conversely, if the price turns down from the moving averages, it will indicate that sellers are offloading small amounts. The XRP/USDT pair could then retreat to the critical support at $0.56.
Avalanche Technical Analysis
Avalanche signaled the start of the next leg of the uptrend by breaking above the resistance at $45.33 on December 16th. The upward move may face a minor hurdle at the $50 level. If the price turns down from this level but stays above $38, it will indicate that sentiment remains positive and investors are buying the dips.
This development would increase the likelihood of a rally above $50. If this happens, the AVAX/USDT pair could rise to $70. The overbought level on the RSI suggests that the rally might have become overheated in the near term and a consolidation or correction is possible. Sellers will need to pull the price below $38 to gain control.
