Solana Chart Of The Week, Support and Resistance Points | Market Update
Report Date: April 3rd, 2022
Bill Noble, Senior Market Analyst, Token Metrics
The Market Update is centered around using technical analysis to successfully and responsibly navigate the crypto market. It is not intended to be a trading calls newsletter. While technical analysis is an extremely powerful tool, please be aware that it can be temporarily disrupted by large news events.
Total Crypto Market Cap Weekly
Data as of 04/02/2022 – Past performance not indicative of future returns
Looking at total cryptocurrency market cap (TOTAL), there could be a confirmed breakout above a key resistance level of $1.97 trillion. Using a chart method called hidden pivot analysis, it is possible to draw upside targets of $2.44 trillion and $3.38 trillion. Said plainly, there is a reasonable chance of a rally in the crypto markets during April and May.
Bitcoin – 4-hour Chart
Source: Symbolik
Data as of 04/02/2022 – Past performance not indicative of future returns
Looking at the 4-hour chart of BTC, bitcoin made a clean bounce off a DeMark support point at 42,255. If that level continues to act as support, BTC may be able to extend the rally to $48,600, $52,000, and eventually $57,000.
Ethereum 4-Hour Chart
Source: Symbolk
Data as of 04/02/2022 –Past performance not indicative of future returns
Ethereum may be starting a new uptrend. It could be one positive sign if ETH ignores DeMark topping signals on the 4-hour chart. If ETH moves above and then spends time above a resistance point at $3,570, that would be a more precise indicator that a move to $4,058 is possible.
Bitcoin – Weekly Chart
Data as of 04/02/2022 – Past performance not indicative of future returns
On the Bitcoin weekly chart, BTC is turning higher after bouncing off a critical Fibonacci retracement level at $45,276. If BTC can close this week above an important DeMark moving average at $47,000, a big up move could unfold on or just after April 5.
Altcoin Chart of the Week
SOL: Weekly Chart
Data as of 04/02/2022 – Past performance not indicative of future returns
Token Metrics AI-based indicators and a host of other indicators suggest the uptrend in Solana can continue. If SOL achieves a weekly close above $150, DeMark’s work indicates a move to $248 is possible.
Key takeaways:
- Demand for crypto assets seems to be returning. Investors may be waking up to the fact that BTC, ETH, SOL, and AVAX will be a part of the new monetary order.
- The powerful rally in DeFi 1.0 (ex: AAVE and SNX) indicates that institutional money is flooding into DeFi, seeking a return that is close to the absurdly high inflation rate.
- As capital floods into DeFi, yields may drop. This likely forces both retail traders and hedge funds to seek capital appreciation. That means a large flock of people and institutions have yet to buy crypto. Said differently, if stocks fall into a range and bonds continue to drop, and commodities are overbought, the crypto market could be the only “beta trade” on the upside.
