Solana
The 175% PEPE rally continues, will it reach 200%? Bitcoin (BTC) loses $70,000 again, for how long? Is Solana (SOL) Entering a Correction?
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PEPE has received a lot of hate and praise in the past. The questionable holder composition was a huge wake-up call for the meme asset that halted the momentum it was gaining in early 2024. However, as time passed and funds redistributed, PEPE I had a chance to recover and I went for it.
In the last days, PEPE jumped an impressive 175%. The reason behind this rally is likely part of improving sentiment among traders and investors. PEPE’s momentum is enormous, almost all resistance has been broken, and it is unclear what could stop it, unless profit taking is put in place.
Moving averages on the chart provide additional information. The 50-day moving average (blue line) has crossed above the 200-day moving average (orange line), forming a “golden cross”. This is generally considered a bullish indicator, suggesting that the current uptrend may continue. Additionally, trading volume was high, reinforcing the bullish feeling.
Moving averages currently offer additional insight. With the golden cross intact, bullish PEPE holders could begin to increase their positions, which should increase its value even more. The volume is also there, which creates a good basis for the price.
The Relative Strength Index (RSI) is currently at 72, indicating that PEPE is in overbought territory. Of course, this can cause a potential pullback, but it is unlikely to affect the long-term situation as the RSI tends to dip and rise quite often.
Bitcoin’s Chances at $70,000
Despite the excitement, Bitcoin could not maintain its value above $70,000. It has now fallen back below this anticipated threshold. Currently, BTC is trading around $69,700. There is always a chance to bounce back. Here’s why.
Bitcoin recently reached the $70,000 mark. He was unable to hold on and slipped below that level. However, there is reason to believe he could make a comeback.
On-Chain Metrics: Data indicates that 97% of BTC holders are making profits at this price level. This suggests that many long-term investors are doing well financially, creating a base that can avoid selloffs.
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Whale Concentration: Eleven percent of BTC ownership is owned by large holders, known as “whales.” This lower concentration helps mitigate the risk of sell-offs that could negatively impact prices.
Trading Volumes: Notable trades above $100,000 totaled $93.77 billion during the week. This increased investor activity is a sign. Furthermore, with foreign exchange inflows and outflows balancing at around $9.7 billion, this indicates that investors are not rushing to withdraw their holdings.
Market Overview: The overall outlook appears optimistic, supported by encouraging developments such as possible ETF approvals and growing investor attention. Bitcoin generally follows these patterns, which could push it past the $70,000 mark again.
Solana got $180
Solana remains one of the strongest assets on the market today. The “Ethereum Killer” has massively retraced the past, leaving investors in a state of ruin even with SOL at $140. However, after reaching $180, profitability jumped, but will it stay that way?
Solana could be facing a correction phase. Technical indicators, such as the RSI, are approaching overbought levels, suggesting that the asset may be on the verge of a pullback. Additionally, the price has reached a key resistance level that could trigger profit-taking among short-term traders.
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A correction phase is obviously a possibility; Technical indicators like the RSI are near overbought levels and key resistances are broken, which could lead to profit-taking, and sentiment indicators suggest a correction ahead.
Historical data indicates that Solana experienced strong corrections after substantial rebounds. The current market environment, with its inherent volatility, adds to the uncertainty. Although Solana’s fundamentals remain strong and its ecosystem continues to grow, these factors do not fully protect it from near-term market corrections.
If Bitcoin and other major cryptocurrencies show signs of weakness, Solana could also face downward pressure. The interconnectivity of the crypto market often means that a decline in major assets can lead to corrections in altcoins.