3 Altcoins Nearing a Turning Point – Will Bulls Step In to Reverse the Downtrend?

• The crypto market is down 20% this year, with altcoins hit hardest.
• Ethereum sees increased whale interest ahead of network updates.
• Solana tests key support, potential recovery looms if it holds above $130.
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Cryptocurrency markets have been on a downward trend for nearly two months. During this period, global developments continue to overshadow the positive changes in the crypto sector. While trade wars have been at the forefront of developments unsettling the markets in recent months, rising geopolitical risks are also causing investors’ risk appetite to remain low.

The total cryptocurrency market capitalization has dropped by nearly 20% since the beginning of the year, while has remained relatively stable, losing 10% of its value. The altcoin market, however, continues to experience the heaviest losses, down over 20%. Although reactionary buying happens from time to time during the current downturn, low trading volumes are keeping the downward trend in altcoins intact.

1. Ethereum Continues Weak Trend in the Falling Channel

weakened its decline at the lower boundary of the channel after falling as low as $1,850 last week. However, the ETH price remains below the $1,960 support, risking further declines.

Ethereum has been moving horizontally in the range of $1,850 to $1,950 for the past week. As long as the cryptocurrency stays below $1,950, it may decline towards the next support at $1,730 due to selling pressure. On the other hand, if the ETH price can make daily closes above $1,950, the next move could be a recovery towards $2,100 and then $2,400.

On the daily chart, the Stochastic RSI indicator is trending upwards, but buyers have yet to generate enough trading volume to break through the $1,950 resistance. However, with the Ethereum network awaiting a major update, large investors are starting to take advantage of the lower prices.

Whale Interest in Ethereum Increases

One significant development for Ethereum is the whale activity. Blockchain data showed that large investors have poured $811 million into Ethereum, attracted by developments that signal a potential price increase due to Ethereum’s staking and scalability improvements.

Continued whale buying could act as a catalyst to break through critical resistance levels amidst the current uncertainty. Whale movements could strengthen ETH’s long-term bullish outlook.

2. XRP Continues to Maintain Critical Support

XRP/USD (Ripple to US Dollar) Chart

Although XRP continues to trend lower along with the rest of the market, the pullback remains relatively smaller compared to major cryptocurrencies. The SEC’s shift in attitude towards the crypto sector following the Trump administration strengthens expectations that the case will soon be resolved.

Recently, speculation that the SEC and Ripple are about to reach an agreement has once again excited XRP investors. The SEC’s decision not to recognize XRP as a security could pave the way for cryptocurrency assets to be regulated in the US.

Looking at the technical outlook for XRP, the cryptocurrency found quick demand at the $1.9 level during its recent downtrend. Since December, rapid declines to this level have been met with quick recoveries. XRP started to recover after regaining its support at $2.22.

Currently, the closest resistance area for XRP is between $2.3 and $2.35, with short-term EMA values gathered in this region. A clear daily close above $2.35 would enable XRP to break the falling channel, potentially marking the start of a new uptrend. Short-term targets to watch for in a possible rise include $2.43, $2.75, and $3.

In a bearish scenario, failure to break the resistance at $2.35 could increase selling pressure, possibly pushing XRP towards the $1.9 support again.

3. Will Solana be Able to Reverse Its Steeply Accelerating Downtrend?

SOL/USD (Solana to US Dollar) Daily Chart

has been trying to recover from its main support level since the beginning of the month, but it is struggling to find buyers under the current market conditions.

The cryptocurrency, which has particularly benefited from the activity of memecoins on the Solana network in recent months, has entered a sharp correction phase as demand for memecoins has waned. The Solana network’s connection to memecoins has caused it to experience more volatile movements in the overall market decline.

In the last week, the support point at $128 has continued to be tested. This price level was regarded as an important support line for Solana throughout 2024. The downtrend in Solana is showing signs of slowing at the support line just below $130.

The November and January peaks formed a double top pattern on Solana. The pattern began to materialize when the cryptocurrency broke through a neckline around $180. Currently, a pullback to an average of $110 could indicate the completion of this pattern.

As a result, if SOL holds onto its recent support and starts to climb above $130, a new recovery phase could begin for the cryptocurrency. In this case, we could see bullish momentum pushing it towards $150–$180, and then potentially $210.

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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.