Altcoins Decline Amid Market Turmoil; Strategic Investment Opportunities Emerge
Altcoins are experiencing significant declines as US and global market instability casts a bearish outlook on the cryptocurrency sector. Bitcoin has fallen below the $100K threshold, impacting its overall valuation of $2 trillion, leading to increased downward pressure from sellers.
This situation may appear alarming; however, it can be viewed as an opportunity for strategic investors. Discounted altcoins amid this volatility offer potential entry points for those aiming for long-term growth.
This article examines promising altcoins to consider during this dip as part of an investment strategy for December 2024 and a bullish outlook for 2025.
Dogecoin (DOGE)
As the oldest meme coin with the largest market cap, Dogecoin #DOGE ranks among the top 10 cryptocurrencies. It currently holds a market cap of $42.60 billion and is trading at $0.28.
Despite a recent 20% drop in the past 24 hours, an 8.69% recovery in the last hour indicates demand support for Dogecoin at lower price levels. Over the last five days, it has experienced nearly a 30% decline.
After dropping below the $0.30 psychological barrier, the price rejection signals avoidance of a bearish close below the 100-day EMA at $0.2794. Should the broader market recover, Dogecoin could see a V-shaped reversal towards the $0.40 mark.
While new annual highs seem limited, a recovery may allow it to reach $0.50 in early 2025, indicating a positive outlook for inclusion in portfolios.
Solana (SOL)
The price of Solana #SOL has dropped to $175, marking a significant event as it hits dynamic support after several months.
Current trends suggest a bearish scenario, highlighted by a falling channel pattern and an 18% drop over three days. At present, Solana is priced at $184, facing resistance from the 200-day EMA.
This price rejection indicates a potential bounce from critical support. Additionally, the RSI testing oversold conditions suggests supply pressure but also room for recovery if the market stabilizes.
Solana's prominence in the DeFi space enhances its upside potential as decentralized exchange volumes surpass those of Ethereum and Binance Smart Chain. If Solana can reclaim the $200 mark, the uptrend may reach the overhead resistance near $227.
Mantra (OM)
Despite a 10.50% drop on Friday, the Mantra token #OM maintains a sideways trend. Trading around $3.421, it shows resilience against a large influx of supply.
The absence of bullish divergence in the daily RSI raises caution. Nonetheless, the sideways movement supports a bullish flag pattern on the daily chart.
Key resistance lies at the 23.60% Fibonacci level at $4.1301. Following a recent correction, a bullish reversal towards this resistance is anticipated.
In the event of a bullish breakout, Fibonacci projections suggest potential prices reaching $5.27 or the 61.80% Fibonacci levels, offering nearly 45% upside potential. Thus, Mantra represents a key altcoin for a bullish December 2024 and a strong portfolio heading into 2025.