Top 5 Altcoins to Watch in January: Solana (SOL), Bonk (BONK), Injective (INJ), Ethereum (ETH), and Chainlink (LINK) Could Rule.

The cryptocurrency market has seen significant growth this year, with total limits doubling. The market capitalization started from a low of $800 billion and recently peaked at $1.7 trillion, the highest since early May 2022, almost 20 months ago. Interestingly, this surge has been primarily driven not by Bitcoin as we have seen recently, but by emerging altcoins, some of which have experienced massive double-digit gains. Accordingly, we have selected the top five altcoins expected to lead the market in January based on their performance in 2023.

Altcoin market dominance has reached new highs.

December saw a strong rally in the markets, with many altcoins hitting new record highs of the year. However, Bitcoin struggled to make significant gains as it faced strong resistance around the $45,000 level. Sellers’ continued defense against rising Bitcoin prices has paved the way for optimism for many altcoins, who are taking advantage of the situation with increased demand and massive double-digit price gains.

In particular, the market dominance of altcoins, excluding the top 10, reached 13.5% in December, reaching the highest in 2023. Additionally, market capitalization excluding Bitcoin soared to $815 billion, the highest in a year and a half. As the January ETF decision approaches, investors are showing increasing interest in highly volatile altcoins as they aim to maximize returns.

Solana (SOL) Price Analysis

Solana was recently rejected above $110 and fell below the EMA20 trendline on the 4-hour price chart. However, SOL price may soon trigger a bounce from the 23.6% Fibonacci retracement level of $93.

If successful, this could mean market sentiment remains bullish and traders are actively buying while prices are falling. In this case, SOL price could aim to break the resistance at $125 in January. A bullish breakout could see the price hover around $160.

Bonk (BONK) Price Analysis

Bonk price has corrected its price towards the important support level of $0.0000123, making it the main focus of traders and investors. However, the bulls are targeting a recovery above the EMA20 trendline.

If the bulls successfully defend this support level, a relief rally is likely to begin. In this scenario, BONK could consolidate above $0.000019 over the next few days.

In January, BONK price could surge to break the $0.000035 resistance level and start 2024 on a strong note.

Injection Type (INJ) Price Analysis

INJ price has had an incredible performance this year, posting an impressive rise of over 2700%. The price is currently facing a challenge from sellers at the immediate support level of $34. Nevertheless, buyers are actively preventing a decline below the moving average line, showing strong defensive power.

Looking ahead to the coming week, there is a possibility that INJ price may approach the resistance level of $45. A break above this level would likely force buyers to push prices to all-time highs in 2024.

Ethereum (ETH) price analysis

Ethereum price is currently hovering within the pattern’s resistance level of $2,500 and support level of $2,300. However, seller resistance is strong near $2,400, pushing the price below the EMA20 trend line. Bulls aim to defend rising support ahead of the SEC’s ETF decision.

If the bulls succeed, ETH price could continue its upward trajectory with a target of around $2,500. Bullish news from the SEC in January could send the price of ETH skyrocketing to $3,000.

Chainlink (LINK) Price Analysis

Chainlink’s recent decline could be a lucrative opportunity for buyers to accumulate more ahead of a 2024 bull market. Sellers have refused to move above $18 and LINK price is seeing a significant decline, planning to trigger selling pressure.

However, market sentiment regarding Samsung Electronics’ decision is still positive, so the LINK price decline may not worsen further. As a result, buyers could re-enter near the $14.5 decline and start a recovery to challenge the $17-$20 resistance area again in January.