Solana, one of the leading Layer-1 blockchains, had an impressive December as the price of the SOL token surged by 95%. This is particularly noteworthy compared to its major rival, Ethereum (ETH), which only saw a 9.5% increase during the same period.
The price increase of SOL can be attributed to various factors. However, SOL is not the only one on the list of notable profit-making Layer-1 tokens in December. Below, we will examine three other major tokens that have even outperformed Solana as we approach the end of 2023.
While Solana has performed well, Ethereum remains the most popular blockchain with a diverse ecosystem and widespread integration. However, for investors interested in short-term value growth, SOL has been an attractive choice in December.
AVAX PRICE INCREASED OVER 100%
Avalanche (AVAX), one of the top cryptocurrencies by market capitalization, has had an impressive performance in December. The price of AVAX has surged by approximately 104.75% as of the current time, pushing the price to around $44 USD.
Interestingly, Avalanche’s price increase occurred after the unlocking of 9.54 million AVAX tokens at the end of November. This indicates that the market has embraced the increased token supply without negatively impacting its price. This underscores the strong underlying demand for AVAX, especially as transaction fees on the Ethereum network surged in December. At the beginning of the month, the average transaction fee on Avalanche was only $0.051, while on Ethereum, it reached $4.66 per transaction.
Avalanche price analysis
On a technical note, we can observe a clear distinction between the price increase and decrease of AVAX (Avalanche). Notably, the price of AVAX has been forming higher highs, while its daily Relative Strength Index (RSI) has been showing lower highs throughout December, indicating a bearish divergence. This suggests that the cryptocurrency’s upward price momentum may be gradually coming to an end.
With such a divergence, the price of AVAX could potentially decline towards key support levels. These include the 0.383 Fibonacci level, near $33 USD, and the strong 50-day Exponential Moving Average (50-day EMA, represented by the red line), close to $31.50 USD. These support levels may come under testing in the early new year or in January 2024.
NEAR PROTOCOL INCREASES MORE THAN 125%
NEAR Protocol (NEAR) has witnessed a significant price increase, reaching $4.20 USD, an increase of over 125%. Notably, NEAR’s price surge occurred concurrently with the memecoin project NEKO, associated with NEAR Protocol, surging by 350% in December.
The success of NEAR has been driven by strategic partnerships, such as collaborating with Polygon Labs to develop zkWASM and partnering with IDS Inc., based in the United States. This has added further value and potential to the NEAR Protocol project.
NEAR Price Analysis
On a technical note, NEAR’s weekly RSI (Relative Strength Index) is currently in overbought territory, suggesting that the price momentum may have reached a peak and is at risk of a correction or pullback. Therefore, it can be expected that NEAR’s price may correct towards the support level around $2.90 USD. The expected timeframe for this correction could extend from early January 2024 and could exert pressure down to $2.18 USD if the price closes below the $2.90 USD support level. This could potentially be the next downside price target for the bearish scenario.
INJECTIVE PROTOCOL INCREASED 108%
Injective Protocol (INJ) has experienced a strong price surge, rising by over 108% to $38.30 USD. This has been driven by the integration of Artificial Intelligence (AI) into the decentralized finance (DeFi) sector through Injective’s Layer-1 blockchain.
The price increase of the INJ token may also be related to the airdrop trend, where individuals move between different blockchains to receive newly issued airdrop tokens. Some projects built on the Injective Protocol platform have announced plans to carry out airdrops, generating interest from the crypto community.
Crypto analyst Kaduna has noted that many projects have chosen Injective Protocol as the platform to deploy their projects and have announced plans for airdrops. This has contributed to the significant price increase of the INJ token.
INJ price analysis
Similar to NEAR, INJ is facing the risk of a price correction due to recent overbuying.
An important point to note is that the three-day RSI (Relative Strength Index) for this token has been consistently above 70 throughout December. Meanwhile, the price of INJ is approaching the resistance level of the upward trending line that has been in place for several months, at around $42 USD. This could set the stage for a potential correction or consolidation in the near future.
If the price of INJ retreats from the resistance level of the upward trending line, it could lead traders to pay attention to the next support level, which is near $18 USD. This level, over 50% lower than the current price, has previously served as a significant resistance level in November 2023 and September 2021.
This indicates that while INJ has experienced an impressive price surge, it is also facing the risk of a correction and needs to closely monitor support and resistance levels in the near future.