Flipster Crypto Weekly (25 October)

25 October 2024

Is this the Solana cycle?

Dubbed the “Ethereum killer”, Solana (SOL) has taken some time to find its feet but is now showing signs of significant momentum. Following the impact of the FTX collapse, Solana struggled to regain stability; however, it has since made a remarkable recovery, gaining ground and surpassing Ethereum (ETH) in critical metrics like total transactions and active addresses. While Ethereum continues to dominate decentralized exchange (DEX) volume over the past three months, the gap between the two is narrowing.

Ethereum vs Solana key metrics. Source: Dune

This growing parity in key performance indicators has also been reflected in the market's valuation, with the SOL/ETH trading pair reaching all-time highs, indicating increasing confidence in Solana's ecosystem. With Solana catching up to Ethereum and showing strength in its metrics, many are wondering if we are indeed entering the "Solana cycle."

Bitcoin (BTC)

Weekly performance: +0.88%

Year-to-date (YTD) performance: +60.88%

Bitcoin (BTC) encountered resistance at the $68,300 level, a point we highlighted in last week’s analysis. This resistance aligns with the highs seen in July, which BTC has yet to break through successfully. While BTC declined this week, it found support at the 21-day moving average (21MA), with price action forming a longer lower wick—indicating that buyers stepped in at this key level. We may observe some sideways movement between $65,300 and $68,300 as the market navigates a battle for control between buyers and sellers.

Ethereum (ETH)

Weekly performance: -3.24%

Year-to-date (YTD) performance: +10.43%

Ethereum (ETH) experienced a false breakout above its multi-month downtrend line earlier this week before reversing below. However, it found support at the 50-day moving average (50MA), which has led to higher lows and highs since its September bottom. Despite this, ETH continues to lag behind other major cryptocurrencies such as BTC and SOL.

Solana (SOL)

Weekly performance: +16.08%

Year-to-date (YTD) performance: +71.75%

Solana (SOL) emerged as the top performer this week, decisively breaking above the $161 resistance level, as mentioned in our previous analysis. With key moving averages trending upwards and price action remaining above these levels, SOL exhibits strong bullish momentum. However, given the rapid price increase, a slowdown or pullback may occur in the upcoming week.

Apecoin (APE)

Apecoin (APE) was one of the strongest movers early in the week, breaking above its 2-year downtrend line and the 200-day moving average (200MA). This breakout, accompanied by one of the highest trading volumes in years, led to APE more than doubling in price within just three days.

To stay up-to-date with the top performers in the crypto market, download and access the Flipster app. Navigate to the ‘Market’ tab and click on ‘Top Movers’ to view a list of the top-performing cryptocurrencies over the past 24 hours. This feature provides real-time insights into the most active and profitable assets.

APE was on Flipster’s Top movers list on Monday (21 October 2024)

However, the rapid rise was short-lived, as indicated by two long upper wicks on Sunday and Monday’s sessions, suggesting profit-taking activity. This preceded a sharp decline, with APE losing more than 25%, highlighting the volatility and quick shifts in market sentiment.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.