Solana (SOL) has been in a downward spiral over the past week. Since reaching a new all-time high of $264.63 on November 22, SOL has encountered a surge in selling pressure. This has caused its price to drop by almost 10% in the past seven days.

This decline has led to an uptick in long liquidations in the SOL futures market. With strengthening bearish sentiments, Solana long traders may face more losses. Here is why. 

Solana’s Market Activity Faces Decline

Over the past week, SOL’s 8% price drop has wiped out $64 million in long positions from its derivatives market. 

Long liquidations occur when traders who have opened positions in favor of a price rally are forced to sell the asset at a lower price to cover their losses as the price falls. This happens when the asset’s price decreases beyond a certain level, forcing traders with long bets to exit the market.

This is a bearish signal for SOL because as Solana long traders attempt to avoid further losses to their investments, their selling pressure can increase and contribute to further downward movement in the market.

Notably, the decline in SOL’s price has led to a significant drop in activity in its derivatives market. This is reflected in the coin’s open interest, which currently rests at a weekly low of $3.34 billion. 

Open interest refers to the total number of outstanding contracts (futures or options) that have not been settled or closed. When open interest drops during a price decline, traders are closing their positions. This indicates reduced market participation and a lack of conviction in the asset’s positive price movement.

SOL Price Prediction: Bears Dominate the Market

Solana’s Awesome Oscillator confirms the uptick in bearish bias toward the coin. As SOL’s price records a decline over the past week, the indicator has returned red histogram bars. 

The Awesome Oscillator identifies an asset’s price trends and potential reversal points. When it returns red bars, it indicates that the shorter-term momentum is weaker than the longer-term momentum, suggesting a possible bearish trend or a decline in bullish momentum.

If selling activity gains more momentum, SOL’s price will break below the crucial support level, formed at $231.54. A dip below this price point will send SOL’s price downward to $205.56. 

On the other hand, if buying pressure gains momentum, SOL’s price will climb toward its all-time high of $264.63.

Algorand’s price has surged 19% over the past 24 hours, making it the market’s top gainer. The double-digit price rally has pushed the altcoin’s price to a two-year high of $0.34.

With strengthening trading activity, the ALGO token price may attempt to rally above $1 for the first time since 2022. This analysis delves into why that is possible. 

Algorand Open Interest Hits All-Time High

A rise in open interest has accompanied ALGO’s double-digit price hike. This has rallied by 28% over the past 24 hours and is currently at an all-time high of $81 million. 

Open interest measures the total number of outstanding contracts (futures or options) in an asset’s derivatives market and shows the level of trader participation. When it spikes during a price rally, it suggests increased market confidence and participation. It indicates that the rally is backed by strong demand and hints at sustained price growth.

Moreover, ALGO’s Moving Average Convergence Divergence (MACD) indicator observed on a daily chart confirms this bullish outlook. At press time, the altcoin’s MACD line (blue) rests atop its signal line.

This indicator measures an asset’s price trends and momentum and identifies potential reversal points. As in ALGO’s case, when the MACD line is above the signal line, the asset’s price is experiencing upward momentum, signaling a buying opportunity. This crossover indicates that short-term gains are outpacing long-term trends, reflecting positive market sentiment.

ALGO Price Prediction: $1 May Be Within Reach

Currently priced at $0.34, ALGO is holding steady above crucial support at $0.30. If this level strengthens as a solid support floor, it could drive the altcoin toward $0.47. A breakout above this resistance could potentially push it past the $0.50 mark and bring $1 into view. 

However, a shift in market sentiment could invalidate this bullish outlook. Increased selling pressure could cause the ALGO token price to shed its recent gains, pushing it below support at $0.30 and potentially sending it toward $0.08.

In the past 30 days, Ethereum’s (ETH) price has surged by 33%, fueling speculation about the cryptocurrency’s potential to hit new highs. While it seems unlikely as this month draws to a close, analysts’ Ethereum December prediction could bring in more gains for holders.

BeInCrypto explores these forecasts, uncovering the key drivers behind the bullish sentiment surrounding ETH.

Analyst Bullish on Ethereum, but Give Conditions

According to Juan Pellicer, Senior Researcher at IntoTheBlock, Ethereum’s December prediction could see the cryptocurrency hit a new all-time high. However, in his opinion, Pellicer said that this would only come to pass if ETH could break through $4,000.

Besides that, the researcher mentioned that ETH could closely follow Bitcoin’s performance in this case, indicating that large holders’ accumulation and retail participation could be key to the potential. 

“The outlook for Ethereum closely mirrors Bitcoin’s positive trajectory, with significant potential for an end-of-year rally that could gather even more momentum if it successfully breaks through the previous $4,000 ATH. Our on-chain analysis is looking at trends in accumulation by large holders, which would indicate spot buys from both institutional and retail investors,” Pellicer told BeInCrypto.

But as of this writing, Ethereum’s large holders’ netflow has decreased, suggesting that whales are no longer accumulating as much as they were some days back. If this continues, ETH’s price could find it challenging to reach $4,000 next month.

On the other hand, if these holders begin to accumulate again, this might change, and the Ethereum December prediction could end up being bullish.

For Brian Quinlivan, Lead Analyst at Santiment, one key metric to monitor is Ethereum’s funding rate on BitMex and Binance. The funding rate shows if longs (buyers) are dominating shorts (sellers) in the derivatives market.

When it is positive, longs have the upper hand. But if it is negative, shorts do. As of this writing, the funding rates on both exchanges are highly positive. This indicates that longs are dominant, and most traders expect ETH’s price to increase in December.

However, Quinlivan believes the metric needs to stay relatively neutral so that Ethereum’s price can catch BTC.

“But with the longs dominating the shorts on these top exchanges, it means that a significant climb here would be overcoming a lot of odds. Historically, we need funding rates to stay neutral or even lean toward shorting in order to justify future major rises,” the analyst told BeInCrypto.

Another analyst who spoke to BeInCrypto about ETH’s potential next month is Julio Moreno, Head of Research at CryptoQuant. Using the Market Value to Realized Value (MVRV) ratio, Moreno says ETH is approaching an undervalued state relative to BTC.

The MVRV ratio is a key metric that shows if an asset is undervalued or overpriced.

Based on the image above and historical data, Moreno suggests that ETH may soon replicate its price action from February 2020, a period that marked the beginning of its rise to an all-time high in 2021.

“Currently, the relative valuation of ETH against Bitcoin (violet line in the chart) is approaching extreme undervalued territory (green area). The last time that ETH was this undervalued against Bitcoin was back in February 2020.” Moreno said in the conversation with BeInCrypto.

ETH Price Prediction: 4,000 or More on the Table

From a technical perspective, Ethereum has formed a bull flag on the daily chart. The bull flag pattern features a sharp rise, often referred to as the “flagpole,” followed by a tight, rectangular consolidation phase known as the “flag.” 

This formation typically indicates an upcoming breakout, during which the price rests and gathers strength before making an upward move. As seen above, ETH’s price has broken out of the consolidation phase.

While it has faced resistance around $3,600, it is likely to bounce again. If this happens, Ethereum’s December prediction could see the value rise above $4,000. However, if the cryptocurrency faces selling pressure, the trend might change, and ETH could drop to $3,003.