According to crypto analyst Tomiwabold Olajide, when almost every cryptocurrency and token drops significantly from its all-time high (ATH), there is an opportunity for investors to “buy the dip” and see potentially huge returns once current macroeconomic concerns end. The analyst examines Ethereum, Solana, Zap Protocol, and Chainlink and considers which ones offer the best “buy-bottom” opportunity. We have prepared Tomiwabold Olajide’s analysis with his own narration for the readers of Kriptokoin.com.
Ethereum (ETH): $3,350 is the key level traders should watch
Ethereum’s key support is the recent drop at $2,300 and an immediate recovery is seen on the daily chart. The current development shows that the corrective recovery from the flash collapse base of $2,159 is approaching completion at $2,815. If investors continue to buy the dip and ETH’s price builds on its recent momentum, the focus shifts to the $3,000 level.
Break of $3,000 will confirm that this is only a minor increase. It’s hard to say whether it will be issued soon, but it’s worth keeping an eye on the momentum up to $2,900 to see if this bull scenario has any chance of developing further. However, downside risk will remain a cause for concern as long as the price stays below the $3,350 MA 50.
Zap Protocol (ZAP): A sharp return to November price
The ZAP could rise next week if sellers fail to gain traction below the key $0.010 support zone. On the daily timescale, the relative strength index (RSI) has risen from the oversold region but not overly, suggesting that the altcoin may change before a bullish breakout. While the $0.0460 barrier level is a reasonable bullish target, the $0.075 level can also be reached in February.
If ZAP falls further, sellers could test the $0.010 level. At the moment ZAP seems to be filling in “buy bottom”. Therefore, a sharp reversal or at least a 50% recovery to the November price cannot be ruled out in the near term.
Solana (SOL): Creating a death cross does not create sales pressure
Solana rallied to $113.65 on Tuesday after failing to break the $105.00 resistance level in the previous 10 days. Also, the moving averages (MA 50) and (MA 200) are trying to cross on the downside and the relative strength index (RSI) is below its 50-point middle line.
However, due to the delayed nature of this signal, a ‘death cross’ alone will not trigger a sell since the predicted event has already occurred. A bullish trend could be confirmed if the price rises above the $128.06 level. As a result of the rebound at $81.03 and traders’ recent dips, the pair may continue to rise as the bulls target the MA 200.
Chainlink (LINK): More restrained gains on the horizon
After a recovery that started at $1.48 on Jan. 24, LINK rose after filling the dip. The price has risen steadily over the past 7 days and reached $18.13 at the start of the week. The moving averages (MA) 50 and 200 formed a ‘death cross’ in previous sessions after previous sell-offs dragged the market down, but the market has recently rebounded.
The relative strength index (RSI) broke above the 40 mark, reflecting the market recovery. A close above the moving average (MA 50) at $21.00 may excite buyer interest and confirm further progress towards the MA 200 at $24.50. The bears could benefit from a dip below the horizontal level at $17.00, where LINK is currently trading.
Analyst more hopeful than Solana and Zap Protocol
According to the analyst, ZAP and Solana have the shortest- and long-term bullish outlooks among the four altcoins studied, as investors rush to buy the dip. The analyst explains the reason for this situation as follows.
Solana rallied to ATH levels at $267.52 before the bearish wave hit the market. This token is currently holding gains and sentiment remains strong despite hints of overexpansion. As the RSI moves away from the oversold zone, more buying pressure from traders looking to take advantage of the SOL at ATH could push its price higher.
As for the ZAP, it remains in the range and could gain traction and rise sharply as a result of the market’s buying bottom sentiment. Next, there is some pressure on the moving average (MA 50) barrier and will give ZAP ammunition to convert the $0.02, 0.03 and $0.04 critical areas into support before aiming for more gains.
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