Which Large Cap Crypto To Buy Today January 23: BNB, ETH, SOL?

24.01.2024

Fear is gripping investors faster than spreading wildfire as crypto sell-offs continue. While some analysts like @jaydee_577 on X foresaw a potential pullback following the approval of BTC ETFs, a majority of market participants were caught pants down, looking forward to Bitcoin price breaking above $50,000 and continuing with a Q4 rally in 2024. Despite the correction, identifying the most suitable positions to dollar-cost average (DCA) into the best crypto to buy would draw a wedge between winners and losers.

BULLSEYE! Glad we KNEW it was coming after calling 45k and 48.8k top & IGNORED the BTC ETF narratives! First target hit! THE PRECISION!

I expect more downside the coming month or two.. A relief rally coming before one final capitulation wick into the second orange box? 💪🙏 pic.twitter.com/CxHqsr3R3A

— JD 🇵🇭 (@jaydee_757) January 23, 2024

Bitcoin holds at $39,356 at the time of writing — US business hours on Tuesday. Traders are pushing for a bounce above the crucial $40,000 — a move likely to improve investor sentiment towards the crypto market.

That said, an immediate bounce back in BTC price could have a direct positive influence on the prices of altcoins, starting with Ethereum (ETH) after dropping by almost 14% in seven days to $2,200.

Solana (SOL) and Binance Coin (BNB) are other crypto to consider buying, especially if support at $80 holds.

Can Binance Coin (BNB) price bounce back in January?

Over the past month, the price of Binance Coin price has shown significant volatility, fluctuating within the confines of a flag pattern defined by two converging, downward-sloping trendlines. Although these trendlines indicate a correction phase, the coin’s maintenance above the 38.2% Fibonacci retracement level suggests that the broader recovery trend remains unbroken.

BNB price chart | Tradingview

While there is a potential risk of the price of BNB dipping to $280 due to ongoing supply pressures, buyers still have a significant chance to reverse the trend as long as the flag pattern remains valid. Consequently, bullish traders should be on the lookout for a breakout above the pattern’s resistance trendline, as this would be a strong indication of an uptrend continuation.

Should such a breakout occur, it could potentially elevate the coin’s value to an impressive high of $430.

Is recovery beckoning as Ethereum price nosedive?

The path of least resistance is majorly inclined downwards, reinforced by a vivid sell signal from the Moving Average Convergence Divergence (MACD) indicator.

According to the daily chart, most traders and speculators missed a negative Relative Strength Index (RSI) divergence from ETH price possibly due to optimism around the ETF.

With the RSI neutral but falling below 40, an immediate recovery could be a pipe dream. Therefore, it could be prudent for traders to be ready to dollar-cost average (DCA) while anticipating a rebound.

Ethereum price chart | Tradingview

Holding above $2,200, on the other hand, could usher in another bullish era, where bulls push for an upswing beyond the January peak of $2,715 and aim for highs above $3,000.

Can $80 be a good entry position for SOL?

Declines since Solana price peaked at $125 in December respected the confines of a descending channel, with no immediate sign of a trend reversal. For now, holding above support at $80 means that bulls have not lost all hope and might push for a short-term recovery to $100.

The action below two critical bull market indicators applied to the daily chart — the 20-day Exponential Moving Average (EMA) (blue) and the 50-day EMA (red) point toward a worsening technical structure.

Solana price chart | Tradingview

The Relative Strength Index (RSI) although neutral is dropping sharply towards the oversold region. This implies a bearish outlook and the immense possibility of the downtrend extending below $80.

An immediate rebound from the buyer congestion at $80 might improve investor sentiment. To be on the safe side, traders should wait until Solana price is accepted back into the upper half of the descending channel, with support provided by the middle boundary and the 50-day EMA at $87.