ETH, SOL, ZAP and LINK – Which altcoin is the best ‘buy-the-dip’ opportunity?

The cryptocurrency market has suffered a series of major blows in recent weeks and months, with concerns about the new Omicron variant of coronavirus and the Fed’s plans to hike interest rates leading to hundreds of billions of dollars of market cap being wiped off.

However, with almost every coin and token considerably down on its all-time high, investors have a great opportunity to “buy the dip” and potentially see big returns once these macroeconomic concerns blow over.

In this article, we explore four altcoins –Ethereum (ETH), Solana (SOL), Zap Protocol (ZAP), and Chainlink (LINK) – and evaluate which represents the best “buy the dip” opportunity.

ETH/USD - $3,350 the key level for investors to watch

ETH/USD Daily Chart

The recent dip through Ether's key support at $2,300 and immediate recovery is seen on the daily chart. Although, as shown on ETH/USD, the current development suggests that the corrective rebound from the $2,159 flash crash bottom nears its completion at $2,815. The focus has shifted to the $3,000 level if investors continue to buy the dip and ETH’s price builds on its recent momentum.

A break of the $3,000 level will confirm such as it's just a tiny spike away. It's difficult to say whether it'll be taken out shortly but it's worth keeping an eye on the momentum through $2,900 to see if there's a chance of this bullish scenario developing further. However, downside risk will continue to be a concern as long as the price remains below the MA 50 of $3,350.

ZAP/USD poised for strong short-term gains

ZAP/USD Daily Chart

If sellers fail to gain traction below the $0.010 key support zone, ZAP/USD could rally in the following week. On the daily time scale, the relative strength index (RSI) is up from the oversold zone but not excessively, indicating that the pair could range before an upsurge.

The $0.0460 barrier level is a plausible bullish goal, while the $0.075 level could also be reachable sometime in February.

Sellers may test the $0.010 level if the pair falls further. At this moment, the pair appears to be filling in the buy-the-dip, so a sharp comeback to its November price, or at the very least a 50% recovery, cannot be ruled out in the near term.

SOL/USD – Forming death cross won’t add selling pressure

SOL/USD Daily Chart

The SOL/USD pair hit a high of $113.65 on Tuesday, after failing to break through the $105.00 level of resistance in the prior 10 days. Furthermore, the moving averages (MA 50) and (MA 200) are attempting a bearish cross, and the relative strength index (RSI) is below its 50-point midline.

However, due to the lagging nature of this signal, a death cross alone will not trigger a sell-off because the predicted event has already occurred. A bullish trend might be confirmed if the price surges above the $128.06 level. As a result of its rebound from $81.03 and recent dip-buying by investors, the pair may continue to surge as bulls aim for the MA 200.

LINK/USD – More measured gains on the horizon

LINK/USD Daily Chart

Following a rebound from a low of $13.48 on Jan. 24, LINK climbed higher after filling the dip. The price has risen steadily over the last 7 days, reaching a high of $18.13 at the week's start. After the previous sell-off drove the market lower, the moving averages (MA) 50 and 200 established a 'death cross' in the prior sessions, but the market has recently rebounded.

The relative strength index (RSI) has risen over the 40 mark, reflecting the market recovery. A close over the moving average (MA 50) at $21.00 might excite buyer interest and confirm further advances towards the MA 200 at $24.50. Bears may take advantage of a fall below the horizontal level at $17.00, where LINK/USD trades presently.

Conclusion

ZAP and Solana have the most bullish short- and long-term outlooks among the four altcoins examined in this article, as investors rush to buy the dip.

Solana had risen to all-time highs of $267.52 before the bearish wave hit the market. This token is maintaining its gains at the moment and sentiment remains strong despite hints of an overextension. As the RSI hovers away from the oversold zone, more buying pressure from investors who are looking to benefit from SOL being well down on its all-time high could cause its price to surge.

As for ZAP, it continues to range and might gain traction and rally sharply as a result of the market’s buy the dip sentiment. A print over the moving average (MA 50) barrier is next and would give ZAP ammunition to turn the $0.02, $0.03, and $0.04 critical zones into support, before targeting further gains.