Solana
Betting on Solana and “dog coins”? Here’s why this executive supports this idea
- Analysts expect the actions of the Fed and the US Treasury to affect the market slowly but positively.
- Hayes eyes Solana, ‘dog coins’ for momentum trading as liquidity improves
Market analysts expect a slight upward impact on Bitcoin [BTC] and markets as a whole following the Fed’s recent “dovish” decision on rates and the US Treasury. QRA (Quarterly reimbursement announcement).
According to Singapore-based institutional cryptocurrency trading firm QCP, the US Fed and QRA have been “more dovish than expected”. He note that,
“At the FOMC, Powell said the Fed was not looking to raise rates and announced the slowing of quantitative tightening (QT) from $60 billion per month to $25 billion. For QRA, the Treasury will keep longer-dated issues unchanged, reducing fears of rising long-term yields. This should help curb the rise of the dollar, which is positive for risk assets.
Arthur Hayes, co-founder of BitMEX echoes similar sentiments, but stressed that the impact on liquidity will be light on the charts.
“The impact of this QRA is slightly positive in terms of dollar liquidity… But it will help us pump our bags slowly over time. »
Hayes Considers Solana, ‘Dog Coins’ for Momentum Trading
Hayes added that the current negative price movement will ease as liquidity slowly improves each month. In fact, he expects BTC to reclaim $60,000 and remain in a range between $60,000 and $70,000 until August.
But that’s not all, as the executive expects other altcoins to perform better. For his part, Hayes is eyeing Solana [SOL], dogwifhat [WIF], Dogecoin [DOGE] for dynamic trading. Part of his statement read:
“I buy Solana and Doggie coins for dynamic trading positions.”
Momentum trading is a technique that involves buying or selling an asset that is moving extremely in one direction, followed by exits when there are signs of a flash price reversal. Asset manager Franklin Templeton is also optimistic inclination towards Solana.
However, SOL’s Latest Price Action highlighted a downtrend and revealed that short traders took advantage of market dumping. It was trading at $136 at press time, down 35% from its record high of $210 in mid-March.
However, the bulls defended the near-term support at $126 twice, in mid-April and early May. Nonetheless, a decisive trend reversal could only materialize if the price breaks the previous lower high of $160.
Additionally, Santiment data showed that overall market sentiment around SOL was still negative, as indicated by the negative weighted sentiment reading. A strong bullish reversal is therefore unlikely in the short term.
Source: Santiment