Brief Analysis — — SOL
In 2023, SOL saw a 660% rise, ahead of that of BTC. As a blockchain, SOL seems to have returned to 2021. Although SOL faces potential selling pressure from FTX, the excellent experience to users and the airdrop of the protocol on Solana keep the TVL of SOL in the top five. 24h Volume is second of all.
We analyzed SOL last month and the price was below 60 then. After a period of correction, SOL rose further. From a weekly sight, the yellow wavy area displayed by the ME indicator is close to diminishing, which shows that SOL is turning into a bullish trend. From VRVP we can see that SOL is already above the main accumulation. The rapid decline in April 2022 resulted in no obvious accumulation below 87. From a TA perspective, SOL will not have much resistance before reaching 87. Moreover, most of the main accumulation areas of SOL are concentrated in the range in the first half of 2023, which makes holders of SOL less likely to rush to take profits after the rise.
On the daily level, SOL maintains a healthy bullish trend. We believe that most indicators can make you profitable. However, the TSB indicator can help you gain extra alpha and not miss out on the entire movement due to a sudden pullback. When the underlying price rises, the TSB indicator can build a dynamic support level. The bulls will strengthen after the price moves back into the blue and red wavy range. This indicator is used to judge whether the trend has ended or to locate the adding point of the band. We can see that SOL follows this rule.
If the price falls back above the wave range again later, don’t worry, continuing to hold SOL is the best choice.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
