1 year ago
Solana is among the hardest deed by the demise of FTX, arsenic the 2 companies person collaborated to found Serum, a decentralized derivatives market.
This led to Solana being intimately associated with the Sam Bankman-Fried crypto exchange, with much than $900 cardinal worthy of SOL being held by FTX.
Let’s person a speedy overview:
- The company’s fundamentals are strong, truthful it should beryllium capable to commencement making wealth again soon.
- Constant unit from technicals and bearish marketplace circumstances keeps the terms low.
Metrics, though, suggest SOL is making advancement successful its betterment from the catastrophe. Founder and CEO of the IBC Group Mario Nawfal has stated that the token’s fundamentals are “strong,” noting the token’s improvement growth, a steadfast NFT marketspace, and a comparatively precocious regular transaction measurement compared to different L1 chains arsenic evidence.
With SOL registering an increase successful the play and bi-weekly timescales, is the token truly recovering?
SOL’s Fortunes Have Yet To Improve
Despite Nawfal’s assertions, the information shows that token and ecosystem indicators are not looking well.
Messari data indicates that the asset’s volatility is astatine an all-time precocious of 2.00, suggesting that the plus is much apt to determination during this period, whether bullish oregon bearish.
Sharpe’s ratio, which presently stands astatine -3.73, indicates a pessimistic near-term outlook. This indicates that SOL’s returns successful narration to its volatility are adjacent to oregon adjacent to zero.
With a rising triangle, SOL technicals proceed to enactment the bearish trend.
The RSI is overbought connected the 4-hour clip frame, which drives the awesome towards a bearish crossover. The MFI confirms the bearishness of SOL arsenic it declines successful tandem with the price. At the clip of writing, SOL is trading astatine $13.836 with a reddish candle.
At of clip of publication, the apical and little halves of the Bollinger set was $14.3602 and $13.3052. It besides places SOL successful a risky position, arsenic a crunch portion appears to beryllium building.
Too overmuch FUD astir Solana. The fundamentals look solid:
Dev maturation 2nd to ETH
NFT measurement amazingly healthy
FTX illness makes SOL MORE decentralized
Nakamoto Coefficient👌
SOL regular transactions higher than each different L1s
Am I missing something?
— Mario Nawfal (@MarioNawfal) November 27, 2022
SOL And FUD
Even with fantabulous fundamentals, the EMA ribbon is successful the midst of a bearish crossover, making betterment pugnacious for SOL bulls.
Solana struggles to woody with the fear, uncertainty, and doubt around its ecosystem and SOL coin. For a betterment to adjacent beryllium a chance, maintaining enactment astatine $13,0769 is beneficial.
With a CMF of -0.07 and a bearish transverse connected the MACD, the terms of SOL should diminution to $13.0769 oregon below.
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