Posted on

Solana (SOL) Continues To Register Notable Gains Daily, Is $50 the Target?

Solana opened this month on high momentum, consistently posting notable gains over the past few days. SOL scored a weekly high of $45.36 on November 1 before receding. But after a brief decline to the $40 price level, the bulls have regained momentum, intent on pushing closer to $50 this time. But it remains to see if SOL bulls have enough momentum to rally that high.

SOL Bucks All Odds As It Vies For Higher Highs

Despite the high volatility in the altcoin market, Solana (SOL) has refused to back down. The Ethereum killer has continued its uptrend in the past two weeks, making it one of the top-gaining cryptocurrencies today.

SOL graces the top gainers’ list as the fifth-highest gainer in today’s trading session. Solana is trading at $43.23, with over 3% price increase in the last 24 hours.

Solana Bulls have continued to fight off significant sell pressure caused by FTX-related transfers. The crypto exchange is selling millions of crypto assets to pay its debts to customers as it seeks a fresh start.

Reports revealed that the court approved FTX to sell $3 billion worth of crypto assets frozen on the exchange since last year. On-chain data from Spot On Chain shows that the defunct crypto exchange FTX owns millions of SOL coins. According to Spot on Chain’s latest updates, FTX and Alameda have transferred approximately $223 million worth of Solana coins to exchanges. 

However, these large inflows of Solana in the market didn’t cause a decline. Instead, SOL’s price entered a rising channel, initiating an uptrend.

The most significant upturn was when the crypto breached the critical resistance at $22 in mid-October. SOL has been unstoppable since then, crossing the $30 price mark and rising above $40, a position it has maintained in the last few days.

Solana’s price is now over 86% higher than its past month’s value, with a 9.70% seven-day price increase, according to CoinMarketCap data.

SOL Market Outlook As It Flips Over A Multi-month Trendline 

As depicted on the chart below, SOL has broken from a multi-month trendline channel, flipping a significant resistance level at $27.58 to support. The $27 price level is the new trendline pivot as it forms a new channel.

SOL chart

If SOL manages to remain above the $42 price level, given the ongoing bullish momentum, the next target price is $46.83. Maintaining this level could facilitate more rallies to $50 in the coming days. But buyers have to apply more pressure to remain in control.

However, if the bears fail to maintain the $42 price, SOL could decline to $39 and subsequently to $31.43 if the bears mount more pressure.

Meanwhile, SOL continues to live up to its alias, the Ethereum Killer. An update from on-chain data provider Kaiko shows that SOL has outperformed Ethereum since September.

The increase in the SOL/ETH ratio since September confirms this assumption. The SOL/ETH ratio has climbed from 0.011 to nearly 0.025 and is now back to the pre-FTX collapse levels.

Posted on

Research Firm Reveals Its “Altcoin Trading Playbook”

A research firm has revealed an altcoin trading playbook that could serve as a guide for navigating the next cryptocurrency bull run.

K33 Research Shares Its Altcoin Trading Playbook

In a new post on X, K33 Research (formerly Arcane Research) explained that new altcoins make better trades than old ones. The firm has given a few reasons for why this is so.

“In lack of price-driving fundamentals, the narratives and liquidity matter,” explains the research organization. “And new coins generally outperform old coins.”

K33 Research has used the example of some “Ethereum killers” during the last bull market to show how the newer coins outperform the older ones. The below chart shows how the performance of these coins has been compared (note that the Y-axis, the price, is normalized concerning September 22, 2020, here).

Altcoin Ethereum Killers

From the chart, it’s apparent that Tron (TRX) and EOS (EOS), which were vouched as the Ethereum killers during the 2017/18 bull market, failed to set new all-time highs (ATHs) during the 2021 bull run.

However, the new kids on the block, like Solana (SOL) and Avalanche (AVAX), observed much better returns than the old, established altcoins during the latest bull market.

Why do old altcoins have difficulty returning to their former glory? According to K33 Research, there are a few factors behind this. First, the coins that have gone through a cycle have many holders at a loss, waiting to come into the green to exit.

These underwater investors provide additional selling pressure during rallies that new coins, where everyone is in the green during the initial rally, don’t have to face.

The old coins also have to deal with the rising circulating supply because of the token unlocks, which, due to supply-demand dynamics, can hurt the price if the demand side doesn’t catch up.

Altcoin Example

Finally, the research firm notes that old coins are also tied to narratives that have gone out of fashion. On the other hand, new coins are the narratives when they launch and, thus, appear interesting to investors.

While new altcoins certainly have a leg up to old coins regarding these factors, K33 Research notes that not all such coins make for a good investment. The firm advises investors to look for a few things to know whether a project may be worth investing in.

The first thing could be whether or not the total number of holders is rising rapidly for the altcoin. A high amount of adoption means the asset has more steam behind it for building sustainable moves. The firm also says that a low float and high fully dilated value (FDV) should be avoided.

ETH Price

At the time of writing, Ethereum is trading at around $1,600, up 3% during the past week.

Ethereum Price Chart

Posted on

SUI Gets A Bear Introduction On Day 2, Will Sell Pressure Continue?

Yesterday marked a new dawn in the crypto industry as the SUI Layer 1 blockchain launched on Mainnet with its hyped native token SUI. The news of the token launch on major exchanges brought excitement to the crypto community, and SUI did not disappoint as its native token rallied massively, recording over 2,000% in the first hour of listing.

The layer 1 blockchain token was seen to hit the $2.16 mark at the time of its launch and listing on exchanges before it retraced due to selloffs.

However, while crypto investors have been drawn to the opportunities and price potential a layer 1 blockchain token can offer, SUI has temporarily failed to continue its price rally on day 2 of its listing. Bears have sent a welcome message.

SUI Token Price Falls Short On Day 2

The Sui layer 1 blockchain token has experienced a price decline in today’s trading session after a significant rally that followed its launch and listing yesterday on major exchanges.

Related Reading: Polygon (MATIC) Price Shows Vigor, Are Bulls Up To Something?

According to trading data reports from Coingecko, the native token, which trades at $1.33 at the time of writing, is on a negative 38.46% from its 24-hour all-time high of $2.16.

Bears are seen to take over in today’s trading session as the token struggles to hold the price on its red candle on the daily timeframe.

Why Is The Ethereum Killer Falling In Price

The recent price decline of the layer 1 blockchain token may be attributed to selloffs from holders and traders who took part in the SUI recognition sale. Weeks earlier, before the mainnet and token launch, SUI had announced a community access program to enable its community members to receive its native tokens in the “early phases of the network’s life.”

Instead of carrying out airdrops as rewards, the SUI Foundation proposed a recognition sale for its user champions and network supporters. Community members and users eligible for the recognition sale were reported to have met specific requirements as stated by the foundation.

Related Reading: Bitcoin Rips Above $29,000, But Why Is The Mean Transaction Size At A 3-Year Low?

Eligible community members were required to register on a participating exchange, which would then notify them via email on how to purchase the allocated SUI tokens. Bybit, a participating crypto exchange for the recognition sale, made available 1,500 SUI tokens at a unit price of $0.03 for each eligible user purchase.

At this price, each eligible user purchased and received allocations of 1,500 SUI tokens at a total price of $45 before the public listing on May 3, 2023.SUI, upon launch, rallied massively, and at a high of $2, crypto traders who participated in the recognition sale made around $3,000 from their $45 investments.

As it is with airdrops and community recognition sales, the price of the reward token is subject to temporary retracements and price dumps due to selloffs and users cashing out their rewards. While SUI may experience selling pressure, it is important to note that the hype surrounding it is very much active as some call it the Ethereum killer and, as such, may recover in price.

Bitcoin’s price movements also have a major role and effect on the price direction of many altcoins, including SUI, and may dictate if selling pressure continues.

 

SUI

 

Posted on

Is SOL About To Crumble? Major NFT Projects Plan To Switch To Other Blockchains

In the preceding 24 hours, the sentiment of the cryptocurrency market as a whole was mixed, as the majority of top cryptocurrencies experienced mixed price changes.

Solana is in a difficult position, since two of the ecosystem’s most prominent NFT projects are abandoning its network for rivals.  The outlook on the crypto remains bearish in 2022.

On Monday, DeGods announced that the NFT collection will bridge to Ethereum in the first quarter of next year. The y00ts NFT collection, which is part of the same cohort, will move to Polygon.

The official explanation for the transition to these blockchains has not been announced.

What’s Going On With SOL?

Due to bearish signal readings and unfavorable news, the crypto’s price could resume its freefall toward $10.

Strong bearish momentum allowed the bears to push its price below the $12.00 threshold.

As of writing, SOL was trading at $11.16, down 6.5% in the last seven days, data from Coingecko shows. The crypto’s price has retreated by 23.15% since December 15.

Nonetheless, the bulls established support at the level, which stabilized the price activity. Regardless, bearish pressure persists as it continues to decline, although at a much slower rate.

Concerns over the crypto’s exposure to the cryptocurrency exchange FTX increased as cryptocurrencies took a severe battering this year and its stock performance plummeted.

Solana

Glory Days No More

SOL’s price dropped by roughly 90% in 2022 after being a sparkling gem in 2021. It has fallen from a peak of $260 to its current price of $11.16.

Solana established itself as a frontrunner in the rapidly growing field of decentralized finance (DeFi), a key application area for blockchain technology. In its zenith, DeFi’s total value locked (TVL) soared beyond $12 billion.

Although Solana is regarded as the second-largest NFT ecosystem in the world, developers and projects are departing the network.

According to data provided by DappRadar, the ecosystem’s NFT marketplace ranks fourth in terms of trade volume.

The departure of DeGods and y00ts from the ecosystem is anticipated to drop the coin completely out of the top 10 in terms of sales volume.

What Now ‘Ethereum Killer?’

There are speculations that both projects requested funding from the Solana foundation in order to continue on the blockchain, although this has not been proven.

Solana is a blockchain platform that competes with Ethereum.

The proof-of-stake (PoS) system upon which it was founded is both quicker and less taxing on the environment than Ethereum’s.

And while Ethereum can only process 20 transactions per second, Solana can process thousands.

In the meantime, the price of SOL risks falling to the weekly and monthly lows of $11.00 and $10.90 respectively. If the “Ethereum Killer” breaks out of its downtrend and closes above the trendline, the bearish narrative could be invalidated.