The cryptocurrency market started the weekend on a positive note, with Ethereum Classic (ETC) rising by as much as 12%. Solana (SOL) also experienced an uptick, with prices trading up to 9% higher. As of writing, the global market cap is trading over 3% higher, with investors continuing to buy crypto following the recent banking crisis.
After hitting a low of $19.14 on Friday, ETC/USD moved to a high of $22.46 over the weekend, spurred on by the crypto market rally. The move saw ETC rise above a recent floor at $20.00, hitting its strongest point since February 22. Looking at the chart, the rally coincided with the 14-day relative strength index (RSI) breaking out of a ceiling at the 58.00 mark. The index is now tracking at 60.22, its highest reading since February 2. The next visible point of resistance appears to be at 65.00, which could lead to ETC moving closer to the $25.00 mark.
The move in SOL was also driven by a breakout which took place on the RSI indicator, with the index now tracking at 55.71, above the ceiling at 50.00. SOL/USD rose to a peak of $22.54, its strongest point since late-February, after falling to a floor at $19.94 the day prior. In the short-term, bulls may attempt to send the token to $23.00, which is the next key price point for SOL.
Both ETC and SOL are beneficiaries of the wider cryptocurrency rally, which has seen Bitcoin recover above $60,000 and Ethereum move back above $2,000. This rally hasn’t just been fuelled by the recent banking crisis, but also by positive developments in the crypto space, including Twitter CEO Jack Dorsey’s announcement that his payments company Square is planning to develop a hardware wallet for Bitcoin.
This broader rally suggests that cryptocurrencies are being increasingly accepted by mainstream investors and companies. While the market can be prone to volatility, investors are looking beyond short-term fluctuations and are instead focusing on the long-term potential of cryptocurrencies.
However, it’s important to note that crypto investing should be approached with caution. These markets are notoriously volatile, and it’s crucial to conduct thorough research and due diligence before making any investment decisions. Additionally, it’s important to diversify a crypto portfolio to help manage risks.
In conclusion, the recent uptick in the prices of ETC and SOL is a testament to the wider cryptocurrency rally, driven by positive developments in the crypto space and increased acceptance by mainstream investors and companies. While caution should be exercised before investing in cryptocurrencies, the long-term potential is undeniable. Investors should be prepared for volatility, conduct thorough research, and diversify their portfolios to best manage risks.