These 3 coins came back from the dead in 2023
The cryptocurrency market underwent a substantial recovery in 2023, with the top cryptocurrency, Bitcoin ( BTC ), leading the market with 160% year-to-date (YTD) gains.
This rising tide lifted many altcoins as the bull market took off , with several experiencing substantial gains. Let’s take a closer look at the biggest price rebounds of 2023.
Solana stages big comeback
Solana ( SOL ) made the biggest comeback of 2023, rising nearly 1,215% from its cycle low of $8.27 in December 2022. Additionally, it’s up 485% versus Bitcoin from its cycle low of 0.00004952 BTC on June 5.
SOL/USD daily price chart. Source: TradingViewSOL price had fallen 95% in 2022, one of the biggest losers that year, to under $10, primarily due to its FTX exposure .
But Solana’s rise in 2023 can be attributed to its resilience amid FTX’s bankruptcy asset sales, significant decentralized application usage growth, increased market demand and network activity and better network stability .
Solana’s emphasis on mobile accessibility and efficient transaction capabilities also attracted new users and developers, bolstering its market position and adoption.
SOL price analysis
Solana price chart technicals are painting a bearish outlook for the beginning of 2024, however.
Notably, SOL’s weekly relative strength index (RSI) remains above 70, thus increasing its potential to undergo a pullback in the coming weeks. In addition, the SOL sell-off scenario rises as it struggles to close above its 0.5 Fibonacci retracement line near $132.
SOL/USD weekly price chart. Source: TradingViewThe $132 resistance level was instrumental in limiting Solana’s upside attempts in March 2022, which led to a 94% price crash afterward. SOL risks a similar pullback in the first half of 2024, with its primary downside target sitting at its multiyear ascending trendline support (around $40).
Nonetheless, the second half of the year may resume the uptrend for SOL after testing the ascending trendline support. Then, a climb to its previous record high of around $265 could be on the table by the year’s end.
Tron up 1,270% since Covid-19 crash
Tron ( TRX ) crashed over 98% during the crypto market’s 2018–2020 bear cycle. However, TRX/USD is now up over 1,270% since bottoming out near $0.0076 in March 2020, including a 100% rally in 2023.
TRX/USD weekly price chart. Source: TradingViewTron’s price gains coincide with its strong performance in the decentralized finance (DeFi) sector. Notably, the total value locked (TVL) across the Tron ecosystem has increased from nearly 30 million TRX in April 2020 to over 76 billion TRX (~$8 billion) as of December 2023.
Tron TVL performance chart. Source: DefiLlamaIn addition, Tron has engaged in token-burning activities, thus reducing its active supply against a rising TVL, which should push up the price.
Tron has also become the biggest blockchain for stablecoin Tether ( USDT ), which has seen its market cap rise in 2023 as well. Today, more than 50% of all USDT, or nearly $49 billion , exists on the Tron blockchain.
TRX price outlook for 2024
On larger-timeframe charts, Tron appears to be reaching the apex of its giant triangle price range. Therefore, the first quarter of 2024 will likely witness TRX’s price fluctuating between the triangle’s upper trendline (~$0.108) and its lower trendline (~$0.095).
TRX/USD weekly price chart. Source: TradingViewHowever, like all cryptocurrencies, Tron’s price trends for the remainder of 2024 will largely depend on broader factors, such as a spot Bitcoin exchange-traded fund approval , Bitcoin’s halving in April and the global economy in general.
The $0.20 target may come within reach by 2024 if TRX decisively closes above the triangle’s upper trendline on the weekly chart.
Conversely, a break below the triangle’s lower trendline risks crashing TRX’s price toward $0.056, a level coinciding with the 0.236 Fibonacci line and the 200-week exponential moving average (200-week EMA; the blue wave).
Avalanche price up 370%
Avalanche ( AVAX ) price is up nearly 370% when measured from its cycle low of $8.65 in September 2023. Its rebound comes after a 94.25% crash, one of the biggest during the bear market.
AVAX/USD weekly price chart. Source: TradingViewInterestingly, Avalanche’s rebound came around the unlocking of nearly 19 million AVAX tokens in the second half of 2023. The rising prices indicate that markets easily absorbed the additional supply.
Nonetheless, Avalanche’s network metrics show weaker underlying demand. For instance, the TVL across the Avalanche ecosystem has dropped to around 23 million AVAX in December versus about 55 million AVAX in September, when its price rally started.
Avalanche TVL performance chart. Source: DefiLlamaAVAX price outlook for 2024
The weakness in AVAX’s uptrend is visible in the growing divergence between its rising prices and declining volumes.
Related: Cardano (ADA), Solana (SOL) and Polkadot (DOT) soar — Is it altseason?
The rise in price without significant trading volume suggests a lack of strong conviction behind the price movement. It can mean that fewer traders are participating in the market, and those who are may not be fully confident in the sustainability of the price rally.
AVAX/USD weekly price chart. Source: TradingViewAs of Dec. 29, AVAX’s price has stalled at its 0.618 Fib line near $50.50 as resistance. A correction appears to be already underway toward the next Fib line of $29.50, which may play out in Q1, 2024.
A further decline below $29.50 could have AVAX drop to its 50-week EMA near $20.16 as the next bearish target.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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