Weekly market recap (From Dec. 27th to Jan. 4th)
Happy New Year, Sypoolians. One week has passed, have you got a large profit？
During this week, the whole crypto market are finding the new trend, the trading volume is quite low. After a bullish week, short side have significantly increased. The market that had already shown reversal signals was interrupted once again. The previous week’s (20th-26th) gains almost lost. You can see that the strength of long side (SOL>BTC>ETH ) which we mentioned last week was also reflected in this week’s decline. Let’s see what was happening about them last week.
The price returned to the half of the lower shadow (45800), which is an important support position for BTC. The trend of the next few days is very important. If the price does not hold 45800, the decline can’t be reverse and the next position (41000) will be reached. At present, the defence of long side is weak, and the decline is very likely to happen. Otherwise, it is still possible to rise again after the fluctuation .
Conclusion: Mostly falling. Based on the candle of Jan.1 and the strength of long side in the previous week, it is more likely to be a downward with little fluctuation instead of dumping.
In the previous report, we mentioned that ETH long side is not strong. The price unexpectedly fell to the previous low(3600) early in the week. Although long side began to increase,but it can be seen on the gragh that the rise for a few days has only just recovered the red candle of Dec.29. And the strength is not strong. From a larger view, ETH finally exited the monthly bullish channel.
Conclusion: It is a high possibility of falling. According to the nearest candles, the price is likely to return to 3600 again.
For SOL, price was also affected by short side this time and fell below the previous confirmation of long side. Compared with BTC and ETH, SOL is more positive. It just has not maintain the strength of long side. From a recent view, long side has also increased significantly on Jan.1. The rise trend is unlikely to be directly reversed by short side. In the worst case, SOL will enter into a long-term fluctuation.
Conclusion: Both long and short side have signs of enhancement, and SOL may enter a period of fluctuation. Although the probability of rising is slightly less than 50%, there is a profit margin shown in the profit-loss ratio. The take-profit is different from the position we said last week. Affected by the bears of the market, controlling your stop loss and profit position matters much.
Based on the above conclusions,Solana Index which has a high percentage of solana is still a good choice. Both BTC and ETH have declined to a critical position, so the risk of the Top Crypto Index has increased. Quant SAP which has short-position strategy can be a part of your portfolio.
TA of SYP
One of our community members made a TA on SYP:
“ we have reached that pattern completion zone. lets hope for an engulfing candle here. Triple Bullish divergence on Macd, also oversold on RSI 4hr chart. possibilities ”
Feel free to discuss trends with others in our group: https://t.me/sypool_protocol
Disclaimer: Nothing in the article consititutes investment advice. The article 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 article are the sole responsibility of yours. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.