Want to stay ahead of the curve ?

Follow me on X (Twitter) for the latest updates and insights before we dive into today's topic.

Seen LINK & SOL's surge last week ?

Did you miss out, and are now wondering whether to buy at these highs ?

Now we'll be exploring:

• Causes of the sharp rises.
• When it's wise to buy after a surge and when it's not.
• What's the deal specifically with LINK & SOL ?

Why might a token rise ?

1. Fundamental Revaluation of the Project

• Investors and the market as a whole start viewing the potential and value of the project differently.
• This change can be triggered by various reasons:  
• New partnerships or collaborations that can strengthen the project's position in the market.  
• Improvements in technology or the protocol, making the project more efficient or secure.  
• Positive news or regulatory decisions that favor the project.  
• An increase in user/client base or transaction volume/revenue/fees, indicating the project's popularity and acceptance.

2. Short Squeeze

When traders bet on a token's price falling, but the price starts to rise, it can trigger a "short squeeze". Traders who shorted are forced to buy tokens to close their positions, leading to an even more substantial price increase.

3. Someone Wants to Sell Higher

Major players or "whales" can manipulate the market by buying vast amounts of a token to artificially inflate its price. Once the desired price is reached, they can sell their assets, making a profit.

4. Lack of Market Liquidity

With insufficient market liquidity, even small buys or sells can cause significant price fluctuations.

Buying an asset after explosive growth can be risky. Sometimes it's better to "let go" of a token and find a more undervalued project.

Remember, there's always something in the crypto industry.

However, there are circumstances when buying after explosive growth might be justified.

So, when might it be justified to buy ?  

Ongoing Potential

After a fundamental analysis of the project, you conclude that its potential is far from exhausted, and there are substantial reasons for further growth.  

Launching New Features or Products

If explosive growth was caused by news of an imminent launch, and the product or feature hasn't been introduced to the market yet.  

Strategic Partnerships or Investments

News about significant partnerships or investments that haven't been fully factored into the market yet.  

Regulatory Approval

Growth caused by positive regulatory news that can contribute to further adoption and expansion.

When might it not be a good idea to invest ?  

• FOMO (Fear of Missing Out). If buying is primarily driven by the fear of missing out and there's no clear understanding of main growth factors.  
• No News. If growth occurred without any specific news or changes in fundamental factors.  
• Skeptical Experts. If most market analysts and experts are skeptical about further growth.  
• Sharp Fluctuations. If the market exhibits high volatility and the asset's price undergoes sharp fluctuations in both directions, indicating an unstable trend.

Chainlink

• Chainlink is fundamentally essential for the entire crypto industry.
• The project continues to forge new partnerships, attract investments, and develop its product.
• Despite significant positive news, conferences, and updates on new developments, the LINK token price had a long phase of indifference.
• Now, it seems as though the token's price rise is a reflection of its fundamental revaluation, and it could continue growing.

Investment Consideration

• If you believe in the growth of the crypto industry, consider making the LINK token a primary part of your investment portfolio.
• In doing so, it's recommended to use the Dollar Cost Averaging (DCA) strategy.
• This consideration isn't mere speculation, it refers to a wager on the development of the crypto industry as a whole.

Solana

There are several serious reasons to doubt further growth:

• As long as FTX hasn't fully divested from SOL tokens, there will always be an overhanging threat of a sharp decline for the token.
• There's a vast number of stronger competitors and a lack of serious projects choosing Solana over EVM-chains.

From my perspective, SOL's growth is due to:

• The overall market positivity: TVL of most chains grew last week, and in terms of nominal TVL growth, Solana isn't even in the top five.
• The Mcap/TVL indicator suggests Solana is very overvalued compared to its competitors.
• Naturally, the short squeeze also plays a role here.

For real-time updates and more in-depth analysis, follow me on X (Twitter)