Solana is up 95% in December — But why are AVAX, INJ, NEAR surging even higher?
Solana (SOL) is up a whopping 95% in December, outperforming its top layer-one (L1) blockchain token rival, Ether (ETH), which rose merely 9.5% in the same period.
SOL outperformed ETH for several reasons this month. But it isn't the only L1 token to have attained attractive returns in the month. Let's take a closer look at three major tokens that are even beating Solana as the year winds down.
AVAX price up more than 100%
Avalanche (AVAX), the tenth-largest crypto by market cap, has outperformed Solana in December, rising 104.75% month-to-date (MTD) to around $44.
Interestingly, Avalanche's MTD rally follows the unlocking of 9.54 million AVAX tokens in late November, indicating that markets absorbed the additional token supply without hurting its valuation.
That suggests a strong underlying demand for AVAX, particularly against the backdrop of Ethereum's rising gas costs in December. For instance, at the beginning of the month, Avalanche's median gas cost was $0.051 per transaction compared to Ethereum's $4.66.
Avalanche price analysis
From a technical outlook, there exists a visible divergence between AVAX's rising prices and falling momentum.
Notably, AVAX's price has formed higher highs, and its daily relative strength index (RSI) has made lower highs throughout December, indicating a bearish divergence. In other words, the cryptocurrency's bull run could be nearing exhaustion.
As a result of this divergence, AVAX's price could drop toward the support confluence — comprising of its 0.383 Fib line near $33 and 50-day exponential moving average (50-day EMA; the red wave) near $31.50 — by New Year's or in January 2024.
Near Protocol is up over 125%
Near Protocol (NEAR) has surged over 125% MTD to $4.20. The ascent occurred simultaneously with a 350% rally of NEKO, a memecoin project associated with the Near Protocol, which gained considerable traction in December.
Strategic partnerships, such as the one with Polygon Labs for developing zkWASM and with US-based IDS Inc., have further bolstered the Near Protocol project.
NEAR price analysis
Technically, NEAR's weekly RSI stands overbought, indicating bullish exhaustion that may result in a consolidation or a correction.
So, NEAR price may correct toward its June-October 2022 support level of around $2.90 by early January 2024. A decisive close below $2.90 could have bears test the 50-week EMA (the red wave) nar $2.18 as their next downside target.
Injective Protocol rallies 108%
Injective Protocol (INJ) has jumped over 108% MTD to $38.30, a rally partly fueled by the broader boom in artificial intelligence (AI) tokens, given Injective, as a layer-1 blockchain, integrates AI with decentralized finance (DeFi).
The surge in the price of Injective Protocol's INJ token can also be linked to a trend among airdrop farmers. These individuals actively move between different blockchains to collect newly-issued token airdrops.
Analyst Crypto Kaduna highlighted multiple projects built on Injective Protocol, noting that these projects have confirmed plans for airdrops.
The @Injective_ ecosystem is about to explode and many projects that are built on top have confirmed an airdrop.
— Kaduna (@CryptoKaduna) December 12, 2023
The easiest way to buy, stake $INJ and get qualified for the airdrops.
1/
This anticipation of new airdrops has contributed to the rising interest in INJ tokens.
INJ price analysis
Like NEAR, INJ risks correction due to its excessively overbought status.
Related: Bitcoin’s third straight month of gains fuels altcoin comeback
Notably, the cryptocurrency's three-day RSI reading has been above 70 throughout December. At the same time, its price is treading near a mult-month ascending trendline resistance near $42, raising its possibilities of undergoing a correction or consolidation course next.
A pullback from the ascending trendline resistance could have traders eye a decline toward INJ's ascending trendline support near $18. This level, down more than 50% from current price levels, has served as resistance in November 2023 and September 2021.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
