Solana, trend reversal in play
Updated
Solana has been retracing since it overshot on July 13th due to favorable Federal Court ruling for the crypto space.
Note that Solana had been already clearly outperforming altcoin asset class in the days leading to the July 13th spike.
Retracement has been very smooth, with low volumes and prices downsloping in clearly defined channels. The lower the volume in a retracement after a large price increase, the more bullish it is considered.
Have a look at how volume has fared after price spike on Jul 26th (circled in green), higher than the average ONLY when prices were rising, that was already a sign that power was being gradually transferred to the bulls.
As of Saturday 5th I consider this retracement finished, due to multiple confluences that point to a reversal (you can read them in the chart). Next resistance at 25.65, I expect it will be pierced through. Taking into account price reached 32.30 in the recent spike, anchoring effect will motivate buyers to enter into this new uptrend.
On the fundamental side of things the picture is mixed, TVL has posted strong gains, and active addresses have increased slightly. Rest of metrics are down: revenue, NFT sales & development activity. So in essence, it seems this bullish momentum Solana is experiencing since several weeks ago is at least in part speculative in nature.
Good luck to all
Note that Solana had been already clearly outperforming altcoin asset class in the days leading to the July 13th spike.
Retracement has been very smooth, with low volumes and prices downsloping in clearly defined channels. The lower the volume in a retracement after a large price increase, the more bullish it is considered.
Have a look at how volume has fared after price spike on Jul 26th (circled in green), higher than the average ONLY when prices were rising, that was already a sign that power was being gradually transferred to the bulls.
As of Saturday 5th I consider this retracement finished, due to multiple confluences that point to a reversal (you can read them in the chart). Next resistance at 25.65, I expect it will be pierced through. Taking into account price reached 32.30 in the recent spike, anchoring effect will motivate buyers to enter into this new uptrend.
On the fundamental side of things the picture is mixed, TVL has posted strong gains, and active addresses have increased slightly. Rest of metrics are down: revenue, NFT sales & development activity. So in essence, it seems this bullish momentum Solana is experiencing since several weeks ago is at least in part speculative in nature.
Good luck to all
Note
Price touches trendline and produces a rebound, long position open.
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kucoin.com/r/rf/QBSYXV5A
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