Investors, generally gaining strength from the upward trend, are eagerly awaiting Bitcoin‘s (BTC) fourth block reward halving in April, historically leading to notable performance among altcoins. With Bitcoin experiencing a temporary dip to support levels around $65,000 at the start of the week, the recent high volatility has pushed investors to consider strategic opportunities that could maximize their long-term gains. Utilizing tried, tested, and approved investment strategies such as dollar-cost averaging (DCA) could be particularly beneficial during this calm period in the market.
Solana and Pepe Analysis
As this article is being prepared, Bitcoin‘s price is trading at $65,796 after a 0.26% decrease, while the altcoin king Ethereum (ETH) hovers around $3,309. Some major altcoins like XRP (XRP), Dogecoin (DOGE), and Bitcoin Cash (BCH) have fallen victim to the general market downtrend, yet some altcoins like dogwifhat (WIF), Solana (SOL), and Near Protocol (NEAR) appear to be showing strength.
Currently the third-largest altcoin with a market value of $84 billion, Solana (SOL) is trading at $185.48, down 0.28% in the last 24 hours. Technical analysis on a four-hour time frame suggests that a bullish flag formation is present on SOL’s price chart, indicating a potential short-term movement towards the previous high of $210. Despite encountering resistance around $190, Solana appears ready to continue its upward trend, with technical indicators like the Moving Average Convergence Divergence (MACD) potentially signaling an uptrend.
A daily candle close above $190 could indicate the start of a strong uptrend, potentially propelling the price above $210 and reaching levels of $260 and $300.
Furthermore, Pepe (PEPE) is undergoing a recovery phase after a 24% correction from its last peak. Although the altcoin is finding support from its 200-day Exponential Moving Average (EMA), sellers seem to be pressuring the altcoin. The formation of a death cross continues to affect market sentiment and strengthen the sellers’ hand. Investors are advised to monitor PEPE’s position relative to its 200-day EMA and be prepared for potential declines if support levels are breached.
Altcoins Could Ignite Post-Bitcoin Halving
Looking ahead, the 4th block reward halving scheduled between April 18-20 is expected to have significant effects on market dynamics. This event, which will reduce miners’ block rewards by 50%, is likely to increase Bitcoin’s price if demand remains steady or increases. Moreover, the event could potentially trigger a rally in altcoins as well.
At this point, analysts are focusing on the fact that altcoins, especially SOL and PEPE, despite their short-term negative outlooks, are expected to rise and make a significant breakout after the 4th block reward halving. Speculations suggest that both altcoins could set new records in the coming weeks or months.
