SOLANA has obliterated ETHERIUM in this bull market.We now know that approximately 70% of all daily blockchain fees are collected on Solana chain. This reminds us of Etherium in the previous cycle. Solana's being faster and cheaper, ETH L2's cannibalizing their mother chain in activity and fees, and complexity of execution in Etherium chain might be seen as the main reasons here (please comment if any more).
When we look at the price action, we see that CRYPTOCAP:SOL has outvalued CRYPTOCAP:ETH 1200% since the start of 2023. The interesting fact is that this uptrend has been intact since then. While ETH maxis, like a religious revelation, claim that ETH will rise from its ashes and beat BTC eventually, the fundamentals and technicals do not support this idea. I predict that unless dramatical fundamental changes happen, this trend will continue throughout the final stages of this bull market. So I continue to be long SOLETH
SOLETH trade ideas
HTF SOLETH bullish thesis has strengthened. Flippening possibleWe previously made a medium time frame analysis on SOLETH and predicted a reversal of SOL v ETH
we have successfully reached those targets and now have reassessed.
Based on the metrics, technicals, not even mentioning a variety of onchain indicators and whale accumulation we believe SOL is going to continue on its upward movement against ETH.
Charts don't lie. We used to be very bullish and supportive of ETH and charts looked promising (see prior analyses), but ETH is now definitely in weak bullish mode at best or neutral mode at worst, while SOL is in a strong bullish mode.
Based on fib and some other indicators we can expect SOL to outperform ETH by 2.5-3x this cycle.
We are now convinced that the flippening long-awaited by the Ethereum community is bound to happen this cycle. However, not the way they wanted. Instead of ETH flipping BTC, it seems ETH will be flipped by SOL.
Position yourself accordingly.
SOL vs ETH. Who is Winning the Generational Battle for DeFi?Since September of 2023, Sol has crept up on ETH dominance, gradually and for the first time in 5 years broken the previous ATH before the current one.
Following that it immediately retraced and bounced from the resistance. A classic pattern indicating that the wind is behind it's sails, to use a metaphor.
It seems SOL here is ready to take off massively.
Next key levels to watch for:
0.079 next key resistance to watch for
0.096 possible profit taking
0.122 possible profit taking
SOL to lead ETH again? A possibilitySOL broke down its long term growth trend against ETH and entered a correction
that did not however preclude it from recovering
will SOL lead ETH again
and make vitalik seethe?
Charts show that upward continuation for SOL is possible
Maybe it will make a double top against ETH there
and start dumping against ETH for good
for now, the game is on and SOL outperforming ETH YTD already
A lot of hype on Solana, Here is the Solana as compared to EthThis is a ratio chart of SOL/ETH, you can see SOL dominated for 532 days straight. So due to the natural ebbs and flows of markets, we could expect to see SOL/ETH to decline as ETH starts to make a move from the lows and starts to make hew ATHs. Some have already swapped out of SOL and into ETH to get the most out of the upcoming move, however, that is not financial advice. Good Luck to all!
Scaling HeightsUptober is finally upon us. But as Bitcoin's price picked up, the real standout price action this month has once again come from Solana. The high-performance chain is the main hub for this cycle's biggest narrative: memecoin trading. Retail traders enjoy the speed, ease-of-use and 'straightforwardness' of Solana's trading experience. The fact that popular memecoin launchpads are on Solana just furthers this virtuous cycle. Recently, Solana's total volume has superseded that of Ethereum and of its Layer 2s combined. No wonder that Solana's year-to-date price performance has blown both ETH and even BTC out of the water.
This price movement also highlights another market development: the old paradigms are dead. Bitcoin's rallies were supposed to be followed by Ethereum and then by other Alts. If Ethereum underperformed, Alts were supposed to be absolutely crushed. Yet, the tides have turned entirely. Solana has continuously outperformed Ethereum in this cycle so far. Memecoins have been flying, regardless of Ethereum. Meanwhile, Bitcoin, driven by ETFs and institutional adoption, has continued to move in a 'weight class' of its own. The old paradigm is dead, long live the new one?
One of the main challenges for Ethereum in this cycle has been its inability to shape a strong, coherent narrative. While Solana's thesis can be broken down to 'fast casino = gud', Ethereum's complex roadmap, countless Layer 2s and even Layer 3s, and deeply technical conversations have turned away a lot of regular users. Undoubtedly, Ethereum continues to command a lot of developer mindshare. It also comes closest to institutional adoption for smart contract use-cases thanks to its technological maturity. Impressive technical progress is being made towards user-experience improvements such as account and chain abstraction which will make Ethereum easier, faster and better for all users. But if this can already translate into positive price action this cycle remains to be seen.
On the wider macro side, markets remain hopeful that a new breakthrough can finally happen to new Bitcoin all-time-highs. The upcoming US elections and continuing wars in Eastern Europe and the Middle East provide for both greed and despair among traders. A more pro-crypto administration post US elections and an end to the wars could ignite a firework. But right now events could turn either direction. For now, the markets are optimistic, yet also at the whim of a coin-flip. Happy trading everyone!
SOL/ETH: Buy the Dip? Bearish Signal Flashes Before Bull RunSOL/ETH: Bearish Divergence Hints at Correction Before Next Leg Up
The SOL/ETH chart paints a picture of a potential short-term pullback before continuing its upward trend. While the overall outlook remains bullish, the presence of a bearish divergence on the RSI warrants caution.
Potential Correction:
A correction to the 0.04 level is plausible, offering a potential entry point for those looking to capitalize on the long-term uptrend. This correction would provide a healthy retracement before the next leg up.
Targets:
Target 1:
Target 2:
These targets represent key levels that SOL/ETH could reach once the upward momentum resumes after the potential correction.
Bearish Divergence on RSI:
The bearish divergence on the RSI is a notable warning sign. While the price has been making higher highs, the RSI has been making lower highs. This divergence suggests that bullish momentum may be waning, increasing the likelihood of a price correction.
Technical Analysis Breakdown:
Uptrend: The overall trend for SOL/ETH remains bullish, as evidenced by the rising trendline and higher highs in price.
Bearish Divergence: The bearish divergence on the RSI suggests weakening bullish momentum and increases the probability of a price correction.
Potential Correction: A correction to the 0.04 level is possible, providing a healthy retracement before the next leg up.
Strong Support: The green box highlights a strong support zone that could act as a floor during the potential correction.
Key Targets: The defined targets (Target 1 and Target 2) provide clear price objectives for the next leg up.
Investment Considerations:
Risk Management: The potential correction highlights the importance of risk management. Consider using stop-loss orders to limit potential losses.
Entry Point: The potential correction to 0.04 could offer an attractive entry point for those looking to capitalize on the long-term uptrend.
Confirmation: Wait for confirmation of the correction before entering a long position. Look for a bounce off the strong support zone or a bullish reversal pattern on the RSI.
Patience: Exercise patience and avoid chasing the price. Wait for the correction to play out before making any trading decisions.
Disclaimer: This is not financial advice. Please conduct your own research and consult with a financial advisor before making any investment decisions
SOL/ETH: Buy the Dip? Bearish Signal Flashes Before Bull RunSOL/ETH: Bearish Divergence Hints at Correction Before Next Leg Up
The SOL/ETH chart paints a picture of a potential short-term pullback before continuing its upward trend. While the overall outlook remains bullish, the presence of a bearish divergence on the RSI warrants caution.
Potential Correction:
A correction to the 0.04 level is plausible, offering a potential entry point for those looking to capitalize on the long-term uptrend. This correction would provide a healthy retracement before the next leg up.
Targets:
Target 1:
Target 2:
These targets represent key levels that SOL/ETH could reach once the upward momentum resumes after the potential correction.
Bearish Divergence on RSI:
The bearish divergence on the RSI is a notable warning sign. While the price has been making higher highs, the RSI has been making lower highs. This divergence suggests that bullish momentum may be waning, increasing the likelihood of a price correction.
Technical Analysis Breakdown:
Uptrend: The overall trend for SOL/ETH remains bullish, as evidenced by the rising trendline and higher highs in price.
Bearish Divergence: The bearish divergence on the RSI suggests weakening bullish momentum and increases the probability of a price correction.
Potential Correction: A correction to the 0.04 level is possible, providing a healthy retracement before the next leg up.
Strong Support: The green box highlights a strong support zone that could act as a floor during the potential correction.
Key Targets: The defined targets (Target 1 and Target 2) provide clear price objectives for the next leg up.
Investment Considerations:
Risk Management: The potential correction highlights the importance of risk management. Consider using stop-loss orders to limit potential losses.
Entry Point: The potential correction to 0.04 could offer an attractive entry point for those looking to capitalize on the long-term uptrend.
Confirmation: Wait for confirmation of the correction before entering a long position. Look for a bounce off the strong support zone or a bullish reversal pattern on the RSI.
Patience: Exercise patience and avoid chasing the price. Wait for the correction to play out before making any trading decisions.
Disclaimer: This is not financial advice. Please conduct your own research and consult with a financial advisor before making any investment decisions
$SOLETH to .1 w/ added contextLiquidity begets liquidity and SOL is up significantly more than ETH YTD. Could investors chase yield here en masse as rate cuts are expected and TVC:DXY is taking a nose dive?
I expect risk on assets to rally over the coming weeks. CRYPTOCAP:SOL seems to have the better chance of continued outperformance in my opinion; thus CRYPTOCAP:SOL is probably is the best RR in the game right now.
What do you think?