The crypto market is showing strong signs of activity with many coins seeing price breakouts or trading in tight sideways ranges that indicate an upward or downward surge in price coming any moment.
After months of very dull price action, investors are now pouring in, with monthly trading volume rising to $1.2 trillion compared to $1 trillion seen in September, a $200 billion increase.
Let’s take a look at three cryptos exhibiting different trading action.
Solana (SOL) Price Surge
Solana has risen 76% in just a few weeks, an incredible price spike for an already popular cryptocurrency that has shown muted price action since its all-time high seen in 2021. The token reached an intramothly low of $21.15 in mid October and is now up almost 300% from its yearly low in December 2023 when the value was $9.46.
Today, SOL is priced at $40.80, a massive increase for a high-cap coin. Solana serves as a platform for building decentralized applications (dApps), providing a high-performance blockchain infrastructure. It is essentially a competitor to Ethereum, a blockchain network that could facilitate Web3 apps and DeFi protocols, lending it a lot of potential utility if the project is successful.
It seems unlikely that Solana could explode further in price in the near future, as 80% is already a large increase. 10x or 100x gains are typically reserved for coins with small market caps. Because Solana already has a $16 billion market cap, it seems unlikely that the project could explode 100x to $1.6 trillion, for example. So for those looking for extreme price gains, it’s possible that Solana’s ship has sailed for now, but that’s not to say that users can’t take advantage of smaller price spikes and corrections.
El Hippo Prepares for Breakout
El Hippo is a relatively new meme coin that saw 160% price gains in its first month of launch. However, this is a lot more feasible for a smaller project like El Hippo than it is for Solana. HIPP tokens are worth just $0.0000000051 at the moment, and the project’s market cap is just $3.6 million.
A 100x price increase would bring the project to a $360 million market cap, well within the realms of possibility for a meme coin – PEPE, for example, hit a market cap of around $1.6 billion during its all-time high. The DOGE market cap is currently $9 billion.
But is there any price catalyst that could move El Hippo’s price in a similar way? The project is just launched a $10,000 airdrop ending November 03, a major event for a small meme coin and one that has garnered a lot of attention. The project already had an active fanbase creating memes thanks to regular meme contests and a $700 payout issued by the project every two weeks to content creators.
El Hippo has also received many mentions from major influencers over the last week or so. All of this activity has led to very volatile price sideways price action as the market buys and sells HIPP at an increased rate. When a project trades sideways like that, a breakout in either direction is typically about to happen. There’s no telling whether price will breakout to a higher or lower point, but with such positive activity on social media supporting HIPP, it’s possible that the coin could be about to explode like the early days of SHIB or PEPE.
Dogecoin Trades in Sideways Range
Another meme coin trading in a sideways range is Dogecoin, also preparing for a breakout. However, the situation is less clear with DOGE, as the coin could go in either direction with fewer positive price catalysts than a project like HIPP.
DOGE is already well established and has a massive market cap, meaning further upward price momentum would be quite an uphill battle. Many analysts believe that due to the sideways range DOGE is trading in and the already bloated market cap, that a downward price breakout may be about to occur for the popular meme coin. Unlike HIPP, Dogecoin social media activity has been in decline in recent months, as has the price.
Which Crypto Will Boom in 2023?
There’s no telling which crypto will explode before the year is out. However, by studying price trends and past activity in the market, it’s possible to make educated guesses using technical analysis.
Solana may have more climbing to do, despite already being at a major high. El Hippo is the riskiest pick by far on this list, as a newly established meme coin, and has the potential for the highest gains by far – it’s not unusual for an early stage meme coin to blast off by 10x or 100x with the right market conditions. Finally, Dogecoin is likely to struggle to build more upward momentum, although anything is possible.
As always with crypto, it’s important to never invest more than you can afford to lose and to pay careful attention to market activity and the security of your crypto assets.
Source: https://www.analyticsinsight.net/solana-sol-soars-80-as-el-hippo-hipp-and-dogecoin-doge-memecoins-prepare-for-breakout/