Key Insights
- •Among other altcoins, Zcash shows hidden bullish divergence and may rally if a Santa rally starts.
- •Aster gains strength as whales buy more and may break out if demand grows.
- •Solana shows a reversal signal and often performs well when a crypto market Santa rally kicks in.
A Santa rally usually starts when the market tries to rise near the end of the year. It does not happen every December, but many years show stronger prices in the final weeks.
The crypto market fell sharply this month, but Bitcoin is back above $87,000. This makes traders hopeful that a Santa rally may start in December.
If that happens, here are three altcoins to watch for their strong chart signals, on-chain trends, and how they move compared to Bitcoin.
Meanwhile, Bitcoin’s recent movement suggests a shift in market dynamics. The Santa rally might not depend on BTC to drive the altcoins and crypto market higher this time.
Zcash Setup Improves
Zcash has a special place on this top altcoins to watch list because it often moves differently from Bitcoin. It has a -0.75 one-month correlation with Bitcoin.
Correlation shows how two prices move together. A negative value means they move in opposite directions. When Bitcoin is weak, Zcash sometimes gets stronger.
Zcash also shows a hidden bullish divergence. This is a chart signal, which forms when the price makes a higher low, but the Relative Strength Index (RSI) makes a lower low.
It shows if buyers or sellers are stronger. When price holds up but RSI dips, it can mean the trend wants to continue upward.
This signal appeared between November 11 and November 22. It often works as a continuation sign, meaning the uptrend for the altcoin may resume soon.
The important level is $745. If Zcash moves above $745, it can bring higher targets, such as $900 and even $1,000, into the picture. But if the altcoin falls under $422, the chart turns weak again.
Aster Among Top Altcoins to Watch in December
Aster looks strong because whales have been betting heavily on the altcoin. In the last 30 days, whale holdings grew by 118%. Mega whales also increased their number by 2.71%.
Whales are large holders and when they buy more, it usually shows early confidence in the next move.
Aster also has a -0.30 correlation with Bitcoin. This means the altcoin does not follow Bitcoin closely. So even if Bitcoin stays mixed, the crypto can still rise if demand continues.
Aster is trading in a rising wedge pattern, a shape on the chart made by two lines. Even though this pattern can sometimes be weak, Aster bounced from the lower line, which shows buyers are active.
For strength to grow, Aster needs to move above $1.40. If this level breaks, the trend becomes strong again. But if the altcoin falls below $1.06, the chart risks a deeper drop.
If a Santa rally starts, Aster could react fast because whales have already positioned themselves for a move.
Solana Shows Early Signs of a Possible Trend Shift in December
Solana is also among the top altcoins to watch in December. In other words, it is among the top contenders to benefit from the Santa rally in the near future.
November shows an average gain of 6.83%, and this often carries into the first part of December. SOL also jumped 71.4% during a December 2023 rally, proving that it can move quickly when the trend changes.
The chart now shows a standard bullish divergence. This signal appears when the price makes a lower low, but RSI, a momentum indicator, makes a higher low.
This means selling pressure for the altcoin is slowing down. RSI divergence on the daily chart is one of the strongest trend reversal signs.
This makes sense, as Solana has been trending down for over 3 months now.
For Solana to start a stronger recovery, it must break above $171. If this level breaks, momentum becomes positive. As long as the altcoin stays above $126, the reversal idea remains active.
If a Santa rally takes shape, Solana may benefit, as it already shows early reversal signs.