Investment Disclaimer:

• I am not a registered investment, legal, or tax adviser or a broker/dealer, and all opinions expressed by me are from my research for educational purposes only.
• Past performance presented here is not an indicator of future performance.
• This post expresses my own opinion about the cryptocurrency mentioned herein and is not an offer to buy or sell, or a solicitation of any offer to buy or sell the cryptocurrency mentioned in this post.

1. Top 3 Good News for SOL HODLERS !!!

• Over $7 billion inflows into Solana in 24h as SOL rockets to a new all-time high
  Statistic as of 2021-11-04 09:46 AM EDT: 21 positive votes, 1 negative vote

• Solana hits new ATH, briefly overtakes Tether as 4th-largest cryptocurrency
  Statistic as of 2021-11-04 09:46 AM EDT: 20 positive votes, 1 negative vote

• Solana Flips Cardano as Battle of “Ethereum Killers” Intensifies

  Statistic as of 2021-11-04 09:46 AM EDT: 18 positive votes, 4 negative votes

2. How Solana Performs Relative to Other Cryptos ?

As of 03 Nov 2021, Solana has made a cumulative return of 25,350.65% since Jan 2020 and 13,089.09%  since Jan 2021. It is currently the  greatest performing crypto asset since Jan 2021 as compared to the other cryptocurrencies presented above.

3. Technical Analysis on Solana

3.1. Volume Weighted Average Price (VWAP)

VWAP is a technical indicator used by a trader to gauge the overall trend of an asset price movement. VWAP line (orange line) represents the volume-weighted average price (average price here is defined as the average of high, low and close prices) while close price line (blue line) represents the price when SOL1 is closed at the end of every single day. 

Whenever blue line (close price) is above orange line (VWAP), it indicates that the asset is gaining momentum and being traded higher than its average price level. This would represent a 'buy' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'sell' opportunity, anticipating that the price of SOL1 (blue line) to fall to its average level (orange line).

Whenever blue line (close price) is below orange line (VWAP), it indicates that the asset is losing momentum and being traded lower than its average price level. This would represent a 'sell' opportunity for short-term momentum trader whom task is to trade following the trend while a longer term mean-revision trader might take it as a 'buy' opportunity, anticipating that the price of SOL1 (blue line) to rise to its average level (orange line).

As of 03 Nov 2021, VWAP is suggesting that SOL is gaining an extraordinary momentum.

3.2. Moving Average Convergence Divergence (MACD)

MACD is often used by trader as a momentum indicator. There are 2 lines that form the above charts, namely MACD (12, 26) lines and Signal(9) line, while the histogram is calculated by subtracting Signal (9) from MACD (12,26). Histogram would fall to the negative territory whenever MACD (12, 26) is trending at a lower level than Signal (9) and rise to the positive territory whenever MACD (12,26) is trending at a higher level than Signal (9).

MACD (12, 26) is computed by subtracting the 26-day exponential moving average (EMA) of SOL1 closing price from its 12-day EMA. 
Signal (9) on the other hand is calculated as the 9-day EMA of MACD (12,26). 

As MACD (12, 26) goes higher away from Signal (9), it signifies that SOL1 is gaining momentum and whenever it goes trends at a lower level than Signal (9),it signifies that SOL1 is losing momentum. 

As of 03 Nov 2021, MACD is suggesting that SOL is gaining an extraordinary momentum.

3.3. Bollinger Band

Bollinger band is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. Its chart made up of 4 lines, namely:

- SMA (20) (blue line), which is the 20-day simple moving average price of SOL1
- Upper Band (orange line), which is computed by adding 2 standard deviations of SOL1 on SMA (20)
- Lower Band (red line) , which is computed by subtracting 2 standard deviations of SOL1 from SMA (20)
- Close (green line), which is the daily closing price of SOL1

Whenever close line (green) touches the lower band (red), it indicates that SOL1 is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever close line (green) touches the upper band (orange), it indicates that SOL1 is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity. 

As of 03 Nov 2021, Bollinger Band is suggesting that SOL is trading at an overbought territory.

3.4. Relative Strength Index (RSI)

Just like Bollinger Band, Relative Strength Index is often being used by mean-reversion trader as a gauge to assess how undervalued or overvalued an asset is. There are 2 psychological levels, i.e. 30 and 70 in RSI. Whenever the RSI reaches 30, it indicates that SOL1 is corrected too much and is being traded at an undervalued level, representing a 'buy' opportunity. On the other hand, whenever RSI reaches 70, it indicates that SOL1 is gaining too much momentum and is being traded at an overvalued level, thus indicating a 'sell' opportunity. 

As of 03 Nov 2021, RSI is suggesting that SOL is neither overbought nor oversold.

Based on the technical analysis presented above, quantdoge thinks that there is a fair chance for SOL to pull back slightly to a lower price level, but I could be wrong, hence please make your careful due diligence before making any financial decision. 

4. Solana Risk Profile

Based on the 100-day 95% historical Value-at-Risk (VaR) profile of Solana defined above, SOL seems to trade at a similar risk level on 03 Nov 2021 as compared to 10 days before on 24 Oct 2021, with its biggest pullback being seen at -14.35% on a single day during the last 100 days. However, I could be wrong, hence please make your careful due diligence before making any financial decision.

5. Price Simulation for Solana

How did quantdoge simulation perform vs the actual SOL1 price movement over the last week ?

Over the last 7 days, SOL has been trading above the median of quantdoge simulations, indicating that SOL was overbought.

6. SOL Community Analytics

Number of SOL Followers In The Last 30 Days

In the last 30 days alone, Solana followers have grown 21.11 % from 696,405.0 to 843,402.0 on Twitter and grown 21.63 % from 67,785 to 82,445 on Reddit.

Daily increment of Solana Twitter followers peaked on 04 Nov 2021 and its daily increment of Reddit followers peaked on 03 Nov 2021.

If you like my analysis and articles, please follow me at @quantdoge for daily updates.