The cryptocurrency market of August followed the downward trend that started in July, leading to a prolonged correction period for most key cryptocurrency assets. Technical analysis indicates that the prices of many cryptocurrencies have reverted to their multi-month support levels, which may contribute to a bullish long-term outlook. This article will examine a few leading cryptocurrencies that are poised for a substantial recovery, making them promising candidates for long-term investments.
1. Solana (SOL) Price Analysis: Formation of Bullish Pattern Indicates Potential Recovery
Source: Tradingview
The daily chart of Solana (SOL) coin shows that the trend of price decline has shifted sideways, indicating that the bearish run (declining prices) is losing steam. This sideways movement occurs within two converging trendlines that project a symmetric triangle pattern.
At the time of writing, SOL is trading at $21.92, showing a consistent drop due to a broader market sell-off. If the current selling persists, we might expect SOL to lose another 25% of its value and touch the lower trendline of its forming triangle.
But there is optimism for investors bullish in Solana as they can anticipate a strong rebound at this trendline. A breakout upwards from the pattern’s resistance trendline will confirm a trend reversal and could set SOL for a bullish run towards the $60 mark.
2. Binance Coin (BNB) Price Analysis: Buying Opportunity at Lower Support
Source: Tradingview
During the third week of August, Binance Coin (BNB) experienced a severe sell-off due to a high level of bearishness in the market. Starting from a high of $241.5 on August 14th, BNB lost 10.5% of its value and broke the multi-month support of $220.
Losing this support put intense pressure on buyers, potentially signaling a protracted downturn. Currently, BNB is trading at $216.9, and if the selling continues, it’s anticipated to drop another 15% to hit the annual support close to $183.5.
But this lower level presents potential buying opportunities for investors. More cautious buyers can seek a safer entry once the price breaks above the downsloping trendline, which might drive the price towards the $236 mark and, after that, the $352 mark.
3. Litecoin (LTC) Price Analysis: Buyers Looking at 1200-day Support Level
Source: Tradingview
Litecoin (LTC) buyers have consistently found value at a long-lived ascending trendline for over three years. The fact that there have been three successive bounces from this support level attests to its potential as a platform for a bullish uptick.
The current LTC trading price is $65.1, and it is steadily approaching its lower trendline towards $55. This key support level warrants the attention of market participants awaiting signs of a reversal.
A successful rebound from this level could set the course for LTC’s recovery, possibly lifting it beyond the $115 mark, then towards the $280 benchmark.
