With Bitcoin closing above all of its 4-hour EMA bands, altcoins like Solana, Tron, and Stellar battled the bears with all their might. Their short-term technical indicators depict increasing buying momentum as they regain lost support levels.
Solana (SOL)
Source: TradingView, SOL/USD
The January 5 sell-off fueled the bearish bias that has existed in SOL since late December when the alt saw a descending triangle breakout (white).
While buyers were unable to step in, the alt saw a retracement of more than 23% (from Jan. 5) until hitting a 15-week low on Jan. 10.
Alt has dropped below 61.8%, 78.6%, Fibonacci support and has tested the $132 mark several times. The 16% gain in the last three days has caused SOL to cross all of its EMA bands and test 55-EMA (red) is its immediate support. As the gap between the bands decreases, the buying influence increases.
At press time, the alt trades at $151,9125. The RSI witnessed increasing gains after a bullish divergence with the price. Besides, DMI shows a bullish preference while ADX is on a downtrend.
Tron (TRX)
Source: TradingView, TRON/USDT
Buyers were unable to get in as TRX withdrew nearly 20.82% (from Jan. 5) and hit a 5-month low on Jan. 10.
The king coin’s recovery enabled TRX to initiate a breakout of the 11.7% descending expanding wedge (white). With this jump, alt finds a close above 20-50 SMA.
Now, immediate resistance stands at $0.06967 after the bulls reclaimed the $0.0669 support.
At press time, TRX trades at $0.06805. The RSI finally broke through the midline barrier and tested the 59 point resistance twice in the past day. Although DMI slightly skewed towards the bulls, Volume Oscillator instead suggesting a weak upside move.
Stellar (XLM)
Source: TradingView, XLM/USDT
Since the ascending channel breakdown (white) on December 3, XLM has lost almost a third of its value but still secures 24-week support at $0.2464. Therefore, it rose within a rising wedge (white) to test the $0.3022 resistance.
After that, the more widespread sell-off invalidated the bullish cup and handle pattern as XLM retreated within the descending channel (yellow). As a result, it hit a five-week low on January 10.
After retesting the $0.2464 mark, the alt broke out of the pattern after an ROI above 21% in just three days. Therefore, also ensure that the 61.8% support level is intact.
Now, the $0.2932 level will be a point that sellers will have to step in to prevent a prolonged breakout. At press time, XLM was trading on 20-50-200 SMA at $0.28986. The RSI was near the overbought zone and undeniably chose the bulls.