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Tag: crypto market correction

  • Solana Reclaims Crucial Resistance Despite First SOL ETF Outflows – 25% Rally Ahead?

    As the crypto market rebounds from the recent lows, Solana (SOL) has reclaimed a crucial level, nearing a key resistance area that could set the stage for a long-awaited price recovery rally, according to some market watchers.

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    Solana Bounces Despite ETF Outflows

    The crypto market has surged above the $3 trillion mark for the first time in a week, with Bitcoin, Ethereum, and most leading cryptocurrencies reclaiming crucial support levels lost during the latest market pullback.

    Solana joined the market rally and jumped from the recently recovered $135-$140 area to the upper zone of its local range on Wednesday afternoon. Notably, the altcoin has been trading between the $130-$145 price range over the past two weeks, briefly losing the lower boundary during last week’s correction.

    This week, SOL’s price has reclaimed some crucial ground, surging over 10% since Monday’s opening and nearing the $145 resistance. Amid this performance, analyst Ted Pillows noted institutional participation, as SOL treasury companies have started to show early signs of recovery.

    He also highlighted that Solana Exchange-Traded Funds (ETFs) have experienced record inflows this month despite the correction. According to Farside Investors’ data, the SOL-based investment products have registered $613 million in inflows since their launch on October 28.

    It’s worth noting that throughout the recent pullbacks, Solana funds have seen a strong demand, with a 22-day positive streak while the altcoin’s price descended to multi-month lows.

    However, as its price recovered, SOL’s ETFs registered their first negative in nearly a month. 21Shares’ TSOL, which launched a week ago, saw $34 million in outflows on Wednesday, outshining the over $13 million and $10 million in inflows of Bitwise’s BSOL and Grayscale’s GSOL. As a result, the whole category recorded net outflows of $8.1 million.

    In his analysis, Ted Pillows also noted that “It seems like SOL has bottomed for a while, but institutional buying needs to accelerate here. Otherwise, it won’t take long for Solana to make new lows.”

    SOL Ready For December Recovery?

    Analyst Ali Martinez suggested that Solana’s pain might be over as its price “usually bottoms when investors capitulate… And for the past two weeks, that’s exactly what’s been happening.”

    According to the chart, SOL’s price has historically found a floor when the Net Unrealized Profit/Loss (NUPL) indicator reaches the capitulation zone, which it has recently fallen to. Meanwhile, Crypto Patel highlighted that Solana is breaking out of a one-month downtrend, which could trigger a 25% recovery rally near the key $180 barrier in the coming weeks.

    Another market observer warned that the altcoin is “walking straight into the lion’s den” as its price nears the $144-$146 resistance levels. Trader Mr. Ape noted that Solana’s price has been rejected three times from this heavy supply area, and momentum “is slowing again as we hit the zone.”

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    To the trader, this is the crucial level to watch, as another rejection could send the price to the $132 support, where strong demand lies from the previous bounce. On the contrary, a successful breakout from this level and reclaiming it as support could confirm the shift and trigger a surge to the $157 area.

    As of this writing, Solana is trading at $142, a 7.7% increase on the weekly timeframe.

    SOL’s performance on the one-week chart. Source: SOLUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Ethereum’s End-Of-Year Rally Still At Play? Analysts Eye 50% December Jump

    Ethereum (ETH) is attempting to bounce from the market’s Q4 correction, retesting the $3,000 barrier once again. As we approach the end of November, some market observers have suggested that the end-of-year rally may still be possible in the coming weeks.

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    Ethereum Eyes $3,000 Ahead Of Key Upgrade

    On Wednesday, Ethereum experienced a 4.4% daily surge, retesting the $3,000 level for the first time in nearly a week. The cryptocurrency has been trading within the $2,680-$2,980 price range amid the latest market-wide correction, which also saw Bitcoin (BTC) lose some crucial support levels.

    At the start of the week, the King of Altcoins broke above the $2,900 area, attempting to retest the next key resistance over the past two days but ultimately failing to reclaim it. Analyst Ted Pillows highlighted this performance, noting that ETH “tapped the $2,950-$3,000 zone again and got rejected.”

    Per the post, until Ethereum successfully reclaims this level, “the chances of a new low are high.” On the contrary, if the cryptocurrency breaks above this zone with strong volume in the coming days, investors could “expect a rally towards the $3,400 level.”

    The analyst also suggested that the altcoin could see a remarkable recovery rally next week, driven by the upcoming Fusaka upgrade. As he explained, ETH soared around 50% after the network’s Pectra upgrade in May.

    As reported by NewsBTC, the upgrade introduced a series of improvements to increase transaction capacity, enhance efficiency, and reduce system stress. Following the implementation, the cryptocurrency rallied from the $1,800 level to the $2,700 area in a week, which was later followed by an 80% jump in Q3 to its latest all-time high (ATH) of $4,946.

    Now, the Fusaka upgrade is the network’s biggest update since The Merge and is expected to come on December 3, “to relieve one of the network’s most pressing bottlenecks: data availability for rollups,” VanEck explained in October.

    Based on this, Ted Pillows suggested that if ETH repeats its post-Pectra performance with the new upgrade, the altcoin’s price could soar above the $4,000 resistance in the next few weeks.

    End-Of-Year Rally Underway?

    Market watcher Merlijn The Trader also suggested that Ethereum could see another leg up soon, as it is “repeating a textbook wave structure” it has printed multiple times since hitting the bear market bottom in mid-2022.

    “Wave 1: Kicked off the cycle. Wave 2: Is shaking weak hands. wave 3: Where parabolas form,” the trader explained on X, noting that ETH could be ending its corrective move and potentially see another rally in the coming weeks.

    “This pattern printed 3 times before. Each time, ETH went vertical. Now it’s flashing again,” he stated. Similarly, Michaël van de Poppe highlighted Ethereum’s trading pair against Bitcoin, affirming that investors should keep an eye on the chart.

    Notably, ETH is retesting a multi-month downtrend line resistance against BTC, and could “see a strong breakout upwards in the coming weeks.” “This cycle is far from over,” van de Poppe added.

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    Meanwhile, Rekt Capital noted that Ethereum Dominance continues to occupy an area that served as a consolidation zone before the 2021 rally. “As long as ETHDOM can maintain itself above 10.05% then it should be positioned for higher market dominance levels over time,” the analyst concluded.

    As of this writing, ETH trades at $3,023, a 2% increase in the weekly timeframe.

    ETH’s performance on the one-week chart. Source: ETHUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Is Crypto ‘Boring’ Now? Bitwise CEO Says The Market Is Changing

    As the early ‘Uptober’ buzz fizzles and Bitcoin struggles to hold $110,000, the overall crypto market sentiment has seemingly taken a beating. According to online reports, market participants are disappointed with the recent performance, but some experts argue that this means the industry is “winning.”

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    Crypto Vibes Are ‘Sad’ Despite Industry Adoption

    On Thursday, investor and analyst Will Clemente shared on X that “the vibes in the crypto groupchats are just sad.” He explained that investors seem “jaded, depressed, and defeated,” adding that they are “completely giving up” and switching to other asset classes after BTC’s performance this year.

    Bitwise’s CEO, Hunter Horsley, weighed in on the matter, affirming that “Crypto natives are now in a multi-month bear market sentiment,” while the “off-Twitter” sentiment is the “best it’s ever been.”

    Horsley detailed that the offline positive outlook is fueled by the notable decrease in regulatory risk, which has led to the recent spike in institutional adoption and mainstream recognition.

    Notably, the second wave of crypto-based exchange-traded funds (ETFs) started trading this week, with Bitwise’s Solana Staking ETF (BSOL) stealing the spotlight. Moreover, the Digital Asset Treasury (DAT) trend, led by Strategy, continues to pour millions of dollars into cryptocurrencies.

    “The market is changing,” the CEO asserted in his Friday X post, pointing out JPMorgan CEO Jamie Dimon’s recent approach shift. Dimon has been a long-time crypto skeptic, calling the flagship crypto a “Ponzi scheme” and dismissing it as “useless as a pet rock.” Nonetheless, he recently admitted that he was wrong and that crypto, stablecoins, and blockchain are “real.”

    Is The Market ‘Boring’ Or Mature?

    In a response to Clemente’s post, Nic Carter stated that the sentiment shift highlights a deeper truth about the market: the space has matured significantly. He explained that crypto is “boring” now because most of the questions and uncertainties that drove much of the historical volatility have been answered.

    So many of the open questions have been answered, will stablecoins be allowed? yes. will we be banned? no. will we all go to jail for writing software? no. will we be incorporated into tradfi? yes. can tokens have cashflows and not be securities? Apparently. (…) There are still some unanswered questions, particularly around cash-flowing pseudoequity tokens, but we will probably get answers to those in the coming years.

    He also argued that the crypto industry has been largely derisked as a technological substrate, bringing large corporations to adopt these tools, which shows that “crypto natives no longer control the narrative, there’s more serious businesses (which don’t require tokens), there’s less chaos, the whole space has matured significantly.”

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    To Carter, this means that the industry has “won.” However, he noted that clarity and maturity come with less excitement, as “winning means the inherent volatility in the space is highly reduced! This applies to both startups and the underlying assets themselves.”

    “So if you’re sad that volatility has been dampened smile through the tears. it means we won,” he concluded.

    Total crypto market capitalization sits at $3.65 trillion on the one-week chart. Source: TOTAL on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Analyst Warns Solana Price Risks Major Breakdown, Should Investors Worry?

    As Solana’s (SOL) price attempts to hold a crucial support area, an analyst has warned investors that the highly anticipated “Solana season” might not happen as the altcoin risks a massive price crash.

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    Solana Risks ‘Serious Downside’

    On Friday, Solana followed the rest of the market and fell below the $180 support to retest the recent lows. The cryptocurrency started this week by recovering from last week’s correction to its two-month low of $168, briefly attempting to reclaim the $210 resistance on Tuesday.

    However, the recent market volatility has seen the altcoin lose the $200 level again and retest a crucial support area that could determine SOL’s next move. Amid this performance, analyst Crypto Bullet shared a bearish outlook for Solana, suggesting that a 75% crash from current prices might be coming.

    In Q2, the market watcher warned that the cryptocurrency’s bull market was “likely over,” highlighting its structure in the higher timeframe chart. Per the post, SOL “had a clear 5-wave Impulse to the upside that ended in January with $TRUMP coin blow off top,” when the altcoin hit its all-time high (ATH) of $293.

    Based on this, he forecasted that Solana would see an ABC corrective wave pattern in the coming months, with a potential bounce to the $240-$250 area for the B wave, before “the most painful wave down (C).”

    SOL displays a potential ABC corrective wave pattern in the monthly chart. Source: Crypto Bullet on X

    The analyst affirmed that the cryptocurrency has likely completed the B wave, although it could have a bounce to a new higher high before the breakdown. “The monthly candle still has 2 weeks to close green, but frankly speaking, Solana looks cooked (whether we get a higher high to trap more people or not),” he affirmed.

    Crypto Bullet cautioned SOL holders that if the C wave has started, they “should be prepared for some serious downside” in the mid-term toward the $40 target.

    Can SOL Retest $210?

    Analyst Ted Pillows also cast a warning for investors, asserting that “Solana treasury companies are in free fall right now.” He suggested that the recent dump is partially driven by the halt in institutional bidding. “Until these companies show some recovery, I think Solana’s price recovery will be difficult,” the post read.

    Despite the bearish predictions, some market watchers consider that SOL’s bullish outlook is still in play. Man of Bitcoin highlighted that Solana’s price is potentially forming a 1-2 setup, which could send its price back to the $200-$210 area.

    To the analyst, as long as the price holds above the $170 support level, the bullish scenario could continue to play out. Meanwhile, Crypto Yapper noted that Solana is currently retesting a double support in the daily chart, which could set the stage for a 15%-20% bounce.

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    Per the post, SOL’s price is retesting the lower boundary of a 2-month falling wedge formation and the crucial $170-$180 horizontal level, which has served as a major support and resistance level throughout the year.

    Holding these levels in the daily and weekly timeframe could spark a rebound and propel the price to retest the falling wedge’s upper boundary and the crucial horizontal resistance around the $210-220 mark, the analyst noted.

    As of this writing, SOL is trading at $182, a 12.6% decline in the daily timeframe.

    Solana, sol, solusdt
    Solana’s performance in the one-week chart. Source: SOLUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Solana (SOL) Price Risks Drop Below $200 After Losing Key Support, Analyst Warns

    Amid the recent market volatility, Solana (SOL) has lost a crucial area for the first time in over a week, leading some analysts to forecast a potential drop toward the $200 support and below in the coming days.

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    Solana Pullback Eyes $200 Retest

    Solana fell from the $225 area and recorded a 6.6% intraday retrace below the $210 level for the first time in two weeks. Notably, the cryptocurrency has been trading within the $210-$245 levels over the past month, briefly losing this range during the late September pullback.

    As “Uptober” arrived and the overall crypto market recovered, the altcoin bounced from the recent lows, reclaiming the mid-zone of its local price range. Over the past week, SOL traded within the $220-$235 area, retesting both the upper and lower boundaries of this zone throughout this week’s volatile market performance.

    Multiple market watchers warned that losing $215-$220 area could determine whether SOL’s short-term rally was at risk. On Friday morning, the altcoin lost this crucial zone, hitting a one-week low of $207.

    Analyst Crypto Batman forecasted that Solana would likely head lower before bouncing, highlighting two key support areas. He suggested that the altcoin’ could retrace deeper into its Bullish Fair Value Gap (FVG), between $210-$220, which previously served as a key resistance level.

    However, if the price continues to fall, he pointed out that a retest of SOL’s two-month ascending trendline, currently around the $200 mark, would be possible. This trendline was tested as support in late September, when the altcoin fell to the $190 level.

    Similarly, Crypto analyst Man of Bitcoin had affirmed that holding the $216 level was crucial to preserve a bullish scenario in which the cryptocurrency rallied toward the $270 without major pullbacks.

    The analyst cautioned that losing this area would invalidate the bullish setup and likely push the price down toward the local range lows, potentially risking a drop to the $200 barrier.

    SOL’s Make-Or-Break Level

    Meanwhile, market watcher Follis recently stated that SOL has “one of the cleanest” high timeframe charts in the market. He noted that Solana’s 100-day Exponential Moving Average (EMA) indicator in the daily chart holds “the key.”

    Notably, this indicator, currently sitting around the $200 area, has been tested as support and bounced from each time the cryptocurrency has failed to break a major resistance level since August.

    Based on its recent performance, if the altcoin holding the EMA100 on the daily timeframe could see a rebound and target the range highs. On the contrary, if this level is lost, the cryptocurrency risks falling to the September lows.

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    Despite the short-term correction, some analysts remain optimistic about SOL’s end-of-year rally, suggesting that it will continue its path to new highs after the retrace. “$320 remains the target,” Trader Koala affirmed, “Pullback first though.”

    As of this writing, Solana is trading at $205, a 12.1% decline in the weekly timeframe.

    Solana’s performance in the one-week chart. Source: SOLUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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  • Solana Eyes Massive Breakout Amid $240 Retest, But Analyst Issues Crucial Market Warning

    Solana (SOL) could be near the long-awaited price discovery phase after climbing to a seven-month high. However, an analyst suggested investors remain cautious, as the market rally is “closer to the end than the beginning.”

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    Solana Eyes Last Major Resistance

    On Friday, Solana reached a seven-month high of $241.84 after breaking out of its consolidation range earlier in the week. The cryptocurrency had been trading within the $120-$220 price range since the start of February, failing to reclaim the range’s high during the recent short-term recoveries.

    The ongoing rally has sent the cryptocurrency past multiple crucial barriers, “getting close to the final resistance,” analyst Crypto Jelle stated. He highlighted that SOL has been “quietly pushing higher, without anyone paying attention,” climbing 20% since Sunday.

    Now that the altcoin is attempting to reclaim the $240 area as support, the analyst pointed out that Solana has “one last hurdle to overcome” before price discovery.  According to the post, if SOL reclaims the $250 level, “the sky is the limit,” as this area has been a crucial macro resistance level over the past two years.

    To the analyst, turning this level into support could set the base for a rally to $600. Similarly, analyst Ali Martinez suggested that SOL’s main target sits at around the $1,314.41 level after the altcoin broke out of a massive three-year cup and handle pattern.

    Nonetheless, Altcoin Sherpa issued a warning to investors on X, stating that “Now is NOT the time to ape in gigantic.” He asserted that despite thinking that Solana, Ethereum (ETH), and BNB “generally go higher from here, (…) the bulk of the move is done for these.”

    The analyst explained that he will remain bullish “until shown otherwise,” and expects a great performance in the coming months, but noted that the bull run is “closer to the end than the beginning.”

    “We are lucky that the marginal buyers are Tradfi with these DATs but with Saylor not buying as much, hard to tell where the next set of flows come from,” he stated.

    ‘SOL Season’ Momentum Grows

    Bitwise’s CIO Matt Hougan recently forecasted a bullish Q4 rally for Solana, affirming that the cryptocurrency has “all the ingredients (…) for an epic end-of-year run.” He suggested that it could start a “Solana Season” fueled by exchange-traded funds (ETFs) and strong corporate treasury purchases.

    Notably, multiple spot Solana ETFs are awaiting the approval of the US Securities and Exchange Commission (SEC) after the regulatory agency delayed the decision deadline last month. As a result, issuers and investors are expecting a positive outcome around the first half of October.

    Additionally, the recently launched Solana Treasury company, Forward Industries Inc., announced it had successfully closed its private investment in public equity (PIPE) financing on September 11, securing gross proceeds of approximately $1.65 billion for the Company.

    As reported by NewsBTC, Galaxy Digital, Jump Crypto, and Multicoin Capital announced their plan to establish the SOL treasury company to purchase the cryptocurrency, stake it, and generate excess returns.

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    “Forward Industries intends to use the net proceeds from the offering primarily to purchase SOL, the native digital asset of the Solana blockchain,” the company reaffirmed in its Thursday statement.

    As of this writing, SOL is trading at $239.86, a 6.1% increase in the daily timeframe.

    Solana’s performance in the one-week chart. Source: SOLUSDT on TradingView

    Featured Image from Unsplash.com, Chart from TradingView.com

    Rubmar Garcia

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