A widely followed crypto analyst says that Solana (SOL) and one other altcoin are setting themselves up to skyrocket.
In a new video, the host of InvestAnswers tells his 385,000 subscribers that SOL’s relative strength index (RSI) is getting close to flashing a buy signal.
“[Looking] at the Solana chart, you can see the RSI (relative strength index) is a lot more attractive, not as hot, not as overbought, which is a good thing. It’s getting closer to being oversold than overbought.
The other thing I’d like to point out is the fact that we are having a little bit of resistance at the 50-day moving average, but there’s also a compression funnel going on here as well, and the trend is kind of not really our friend right now, but something’s got to give when you look at the way the pricing action is compressing together.
So the question is, is it going to pop and break out of this funnel? I think yes. Once the market recovers a bit. The other thing important to note is we haven’t gotten near the 0.382 FIB [Fibonacci retracement] level, which is a positive, so it is a haircut but remember we’re back at where we were three or four days ago, not a big deal.”
The analyst then points to decentralized finance (DeFi) protocol Aave. He mentions Aave’s recent announcement of launching its new Real World Asset (RWA) Market, which aims to bridge DeFi to real-world assets and financial services.
According to the analyst, the development could act as a bullish catalyst for altcoin.
“[AAVE] did move up from $160 to $320 in a few days, that’s a doubling, but it sold off. People were getting very excited for a while thinking it was going to be off to the races but the latest news I think will bring back up north of $300 to $360.”
SOL is exchanging hands at $175 at time of writing, a 13.5% decrease from its seven-day high of $203 while AAVE is moving for $245, a 16% decrease from $292 during the same time frame.
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/SimpleB/Nikelser Kate