Crypto Weekly Roundup: Solana Establishes New ATH Two Weeks Ahead Of Lisbon Event


Last week Solana (SOL/USDT) was one of the best performing assets out of the TOP 30 coins with an impressive result of +33%. Only Shiba Inu (SHIB/USDT) saw a higher increase (+46.3% compared to seven days ago), but the market capitalization of the Solana Network’s blockchain is more than three times bigger than SHIB’s ($64B vs $20B) which in my mind makes that a slightly better achievement. SOL managed to bypass XRP (XRP/USDT) and currently is the sixth largest cryptoaccording to Last Friday the bulls even attempted to set the new ATH but got rejected just $1 short and ultimately the highest ever price was finally established three days later – yesterday – on Monday the 25th , a few hours before I started writing the article that’s in front of your eyes.

At the moment the Solana token is trading at $211 and many people are wondering what’s next: more green or possibly a correction time? Let’s consider a couple of aspects to get a clearer picture. First of all, why it’s still a great investment – on a macro scale:
– the S&P500 index has been hitting all-time highs again and while we are definitely not out of the woods, at least the global recession seems to have been ‘temporarily postponed’. Also, China FUD has diminished in recent days with Evergrande somehow managing to make their critical payments over the weekend.
– inflation is becoming the most talked about issue across the globe and sadly is likelyhere to stay for a longer while forcing capital to flow into crypto.

As for the Solana token itself, I have collected a couple of really interesting stats and updates for you:
– NFTs have been booming: Solanart, FTX US launching SOL-based NFT marketplace. One Solana NFT sold for $2.1M breaking the network’s record.
– NFT-based gaming sector looks set to become huge soon with Solana taking a large portion of that cake. The first ever move-to-earn NFT game Genopets raised $8.3M and there is more to come soon. Minting non-fungible tokens is much cheaper using the Solana blockchain than Ethereum’s one. In case you might have forgotten, the ETH/SOL bridge is live and working well. Value can be transferred both ways now.
– Total number of SOL wallets has increased by 23% (month to month) which is crucial for the blockchain’s network effect.
– Total value locked in Solana DeFi has increased by 15% over the recent seven days and the blockchain is 3rd in respect of TVL with $13.62B out of circulation because of this.
– Biggest Solana event so far called BREAKPOINT coming up in two weeks, more on the subject in my next article on the token, stay tuned to The conference will take place in Lisbon (7-10th Nov). By the way, the conference is probably the main reason behind the recent price appreciation. By this point, all of us should know too well how such events affect price action – ”buy the rumour, sell the news” situation is likely to occur.

Which brings me to the other question, why investors should think twice before putting their funds into the 6th largest crypto asset. Yup, the ”sell the news” part. Unless SOL gets some breakthrough announcement, partnership etc, I fully expect a lot of selling pressure that could even start a day or two before Lisbon. Plus, as a rule, you don’t usually want to be buying any assets so close to their record prices.


Turning to the charts, we see that the Solana’s token broke out of the symmetrical triangle very nicely on 20th of October and the potential target of this movement is roughly at $230. Although if I’m honest, I don’t fully trust technical analysis when an asset just hit its ATH due to the lack of previous history at such levels. The new record price obviously means a higher high but we need to wait a couple of days to see what kind of a low will be produced next. SOL has had six green candles in a row, but I’m not liking the long top wicks in these candlesticks on the daily – it looks like there might be some serious amount of selling pressure and we could see a short-term trend reversal soon. The $200 mark has become our first area of support for now and if that doesn’t hold, then there should be some help around $175 and a great deal of support around $158 (VPVR’s red line). The RSI 14 is on a 5-week long uptrend with a series of higher highs and higher lows and still has got enough room to sustain more growth.

All in all, Solana while fundamentally becoming stronger and stronger each week as an asset, currently is finding itself in a risky situation as a potential investment with a likely correction within two weeks in my opinion. So, let’s not FOMO IN, always consider the potential risk to reward ratio before making any decisions.



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