The Solana market rallied a bit on Tuesday as we have seen a little bit of “risk on behavior” overall. At this point, the market is looking very much like a market that is trying to respect the $100 level. The large, round, psychologically significant figure attracts quite a bit of attention, so it is not a huge surprise to see that we have had a little bit of a reaction. If we can continue to go higher, then it is likely that we could go looking towards the $120 level.
It should be noted that the $120 level also features the 200 day EMA, which attracts a lot of attention in and of itself. Furthermore, you should pay attention to the fact that the 50 day EMA is starting to race down towards that 200 day indicator as well, so there is the possibility that we formed the so-called “death cross.” I do not pay too much attention to that other than to recognize that longer-term traders are probably looking at it as a potential selling opportunity. I think that we are going to see noisy behavior, but I think we are at least going to try to make a run towards the 200 day EMA, especially if Bitcoin continues to rally the way it did during the session.
Bitcoin runs the crypto world. I do not care about protocols, use cases, or anything else. Quite frankly, neither do major firms. The big money goes into Bitcoin first, Ethereum second. If you watch both of those markets, then you will know what is going to happen with almost any other market in the cryptocurrency world. This is especially true with Solana, which is considered to be a “second-tier investment” by a lot of big money investors. It is not that it does not attract money, it is just not the first place that they run towards. Once Bitcoin starts attracting money, then they understand that other places like Solana, Polygon, and others will start to get a little bit of a boost. In fact, it almost looks as if we are trying to form a bit of a double bottom, but we need to get above that $120 region to confirm it. Once we do, Solana could have quite a ways to go.
