Altcoins start to wake up again: Solana $SOL, Binance Coin $BNB, and Theta Network ($THETA) ready to run
With Bitcoin ($BTC) potentially bringing its latest reversal to an end, the altcoins are primed to run. Solana ($SOL), Binance Coin ($BNB), and Theta Network ($THETA) are three likely candidates for breakouts.
Total 3 chart (altcoins) analysis
Source: TradingView
Total 3 tracks the combined market cap of all cryptocurrencies except $BTC and $ETH. The 2-week chart shows that the combined market cap is still on target to achieve the measured move out of its cup and handle pattern (drawn in yellow). This suggests that altcoins have quite some way to go in order to attain this target of $1.29 trillion. It could also be borne in mind that a possible even bigger cup and handle pattern could be playing out, with the handle being formed right now.
On the downside, the RSI at the bottom of the chart is showing that this current red 2-week candle has resulted in the indicator line being rejected from the descending trendline. This indicator line will definitely need to turn back up and break the descending trendline in order to reverse the downward trend.
$SOL could be the first of the major altcoins to recover
Source: TradingView
Solana’s descent over these last few weeks has surprised many. A beautiful cup and handle pattern had broken to the upside, and all seemed very bright for the $SOL price going forward. However, the major support at $202 gave way and the price continued on down to finally be held up by good support at $176. This also coincides with the upward trendline.
$SOL is currently up 2.3% on Monday so far, and has come up against the first horizontal resistance at $184. $SOL bulls will need to break this and then repeat this feat if the price can get back to the pivotal $202 major resistance.
The Stochastic RSI (momentum indicator) on the weekly chart is fast returning to the bottom and a potential reset. Compared with $BTC and major altcoins, this indicator for $SOL is a lot more advanced, meaning that $SOL could start its main recovery before most.
$BNB breakout or break of trend
Source: TradingView
The weekly chart for $BNB is very similar to that of $SOL, given that the upward trend is still in force. However, $BNB is at its breakout level right now. A band of very strong resistance stretches from $660 to $675, and the price is up against the upper of these resistances currently.
$BNB will either now break out again, or the upward trend will be broken to the downside. The Stochastic RSI is on the way down, but not being as advanced as that of $SOL, the downward momentum could keep the price suppressed a while longer.
$THETA bulls still have it all to do
Source: TradingView
Unlike $SOL and $BNB, the $THETA price is still a long, long way from its all-time high. With the bull market potentially in its last stage, this does not bode well for $THETA in the longer term.
That said, the price is up 4.4% so far on Monday, bringing it to the major horizontal resistance at $2.25. Bulls need to push the price through this level and above the last local high at $3.80 in order for any kind of recovery to take place.
Nevertheless, with the Stochastic RSI indicators on their way back down from the top, the likelihood of rejection is probably quite high. If this does take place, a lower low below $0.90 must be avoided.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
