Solana (SOL), Compound (COMP), and Tomochain (TOMO) Shine as Altcoin Gainers over the Weekend
The cryptocurrency market experienced a bearish performance last week, with many digital assets facing downward pressure. However, amidst this overall trend, three cryptocurrencies stood out as gainers over the weekend: Solana (SOL), Compound (COMP), and Tomochain (TOMO). These altcoins managed to resume their ascent, continuing the positive momentum they had established in the previous week.
Tomochain (TOMO) led the pack in terms of price performance. After reaching a new yearly high of $2.55 on May 28, the TOMO price encountered a decrease, leading to a breakdown from a long-standing ascending support line that had been in place for 111 days. Such breakdowns often indicate the end of an upward trend and are usually followed by significant downward movements.
However, despite the breakdown, the TOMO price did not experience a substantial decline. Instead, it found support at the 0.5 Fibonacci retracement level of $1. On July 10, the price once again reached the previously broken ascending support line, validating it as resistance. This retracement is a common occurrence after breakdowns and typically precedes another downward movement.
If the TOMO price falls further and breaks below the 0.5 Fibonacci retracement support level at $1, it may potentially drop to the next crucial support level at $0.80. Conversely, if the price manages to reclaim the ascending support line, it could move towards the next resistance at $1.73.
Compound (COMP) also displayed a notable price performance over the weekend. On June 29, the COMP price broke out from a descending resistance line and resumed its upward trajectory, reaching a new yearly high of $70.94 on July 4. Although the price retraced afterward, it managed to hold above the $57 horizontal support area, which had previously acted as resistance and was marked by several long upper wicks, indicating selling pressure.
The future trend for COMP largely depends on whether the price bounces off the $57 area or closes below it. A bounce could lead to a new yearly high and an upward move towards $80. Conversely, a close below $57 may trigger a sharp decline towards the previous descending resistance line at $46.
Solana (SOL) also made significant strides, breaking out from a long-term resistance level. On June 10, the SOL price experienced a sharp reversal, marked by a long lower wick and daily movement that seemed to suggest a breakdown from the $17 horizontal support area. However, the price swiftly reversed the trend on June 29, reclaiming the $17 area.
After several unsuccessful attempts, the SOL price finally broke out from a descending resistance line on July 7, which had remained intact for 81 days. The following day, SOL reached a high of $22.50 before experiencing a minor retracement.
If the price decline continues, SOL could find support at the descending resistance line, currently situated at $19. Conversely, if the upward momentum persists, the next resistance level to watch for will be at $26.
Conclusion:
While the overall cryptocurrency market faced a bearish trend last week, Solana (SOL), Compound (COMP), and Tomochain (TOMO) managed to buck the trend and emerge as weekend gainers. Their positive price performances demonstrate resilience and the potential for continued upward momentum. As the crypto market remains dynamic and subject to volatility, investors and enthusiasts will closely monitor the movements of these altcoins and assess their potential for future growth.
