Solana all time high, overbought state Hello everyone, as we all know the market action discounts everything :)
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Solana reached an all-time high at 103.062 breaking all of the old resistance lines, Why is this coin doing so well for itself? and what could be behind this movement?
The main reason why Solana is doing so well is that Solana has the highest per-second transaction among blockchains and the lowest transaction fees, people are realizing that by using Solana they will be saving a lot of money from transactions alone.
Solana is the fastest blockchain in the world and the fastest-growing ecosystem in crypto, with over 400 projects spanning DeFi, NFTs, Web3, and more.
Now let's look at the technical analysis and price action for this coin :
Scenario 1 :
The coin price is trading at 97.437 right now almost hitting the first resistance line at 97.710, The bulls are gaining more power by each day as the market brings more cash flow and knowing that could push the price above the resistance zone from 97.710 - 101.220 which will lead into a breakout of that zone and a further push will happen leading the price to go near the 107.454 level.
Scenario 2 :
The market has been in the overbought state for the last 2 weeks and an RSI divergence has been found which could lead to a reversal in the market, and it will start when the Bears will push the price to the first support line at 90.750 where the main battle will happen between the Bears and Bulls and the market will move according to the winner if the Bulls were to win then we will see the price push back up to the 97.710 level again, And if the Bears wins then we could expect a second drop that's going to be headed near the second support at 87.300 or even the third support at 75.924.
Technical indicators show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Bullish sign)
2) The RSI has been trading in the overbought zone since Aug 14, And a divergence has been found between the market and the indicator which could lead to a reversal in the trend.
3) The ADX is at 87.42 showing that the market is super trending right now, with a positive crossover between DI+ and DI-.
Support & Resistance points :
support Resistance
1) 90.750 1) 97.710
2) 87.300 2) 101.220
3) 75.924 3) 107.454
Fundamental point of view :
On Aug. 24, digital asset management firm Osprey Funds registered a first-of-its-kind Solana fund with the U.S. Securities and Exchange Commission (SEC). In doing so, the New York firm hinted at giving institutional exposure to SOL markets as the token's value surged by more than 4,300% in 2021.
A day later, real-time data feeder Pyth Network announced that it is going live on Solana's proof-of-stake blockchain. The firm provides "high-fidelity streaming data" from trading firms and exchanges, which allows it to cover global market activity without depending on any single data source.
Pyth will use Solana's cross-chain communication protocol "Wormhole" to broadcast market data with decentralized applications functioning atop Ethereum, Binance Smart Chain, and Terra blockchains. According to Cointelegraph
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts and news for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
