The Sun Shines For Solana

Louis Sykes
June 7, 2021

To kick off every week, our first priority before diving straight into our Crypto charts is to ask the simple question: Who won and who lost?

We simply scan for the largest gainers in our Crypto Universe for the prior week, and even more importantly, the largest single-day moves from the prior week. So even if a coin didn't perform the greatest for the full week, identifying substantial surges of demand throughout the week gives us great clues to where any potential future relative strength could lie.

We do similar scans for every other major asset class in the World (Stocks, Rates, Commodities & Forex), so this is no different.

All we want to know is who the leaders are.

So here it is!

Just look at that Solana right at the top alongside Kusama, Binance Coin, and Dogecoin - all coins we covered in-depth last week.

This doesn't come as too much of a surprise seeing as it bucked this volatility incredibly well in recent weeks.

If SOL can reclaim this 45 level it's been battling with since April, that'd be a significant tick of confirmation toward new highs.

If and when that happens, we're owners with a target up near 70.

But that's if and only it's above 45. Below that, and it's someone else's problem.

What's more is that SOL is outperforming the biggest Smart-Contract Platform on the block, Ethereum:

The primary trend is clearly in favor of $SOL on relative terms as the ratio just resolved higher from a 12-month base. With a market cap of just $10B vs $300B+ for $ETH, is there plenty to catch up for this smaller Smart Contract Platform?

If this ratio continues higher as it has done, then that's the bet we want to make.

Let's move now to our Performance Recap of the day:

This time around we've substituted the bottom five coins for FTX's Cryptocurrency indices for a greater top-down look at where the relative strength lies.

The big standout here is this nasty divergence brewing between Altcoins and Bitcoin.

Long story short, we're not loading up on these riskier Altcoins until Bitcoin can get its act together here. The trend is still down, and the number of coins bucking the trend is still incredibly minimal.

There's nothing wrong with waiting on the sidelines with a small number of leaders in your back pocket until this volatility subsides, or having cash positions ready to short these things down on the way to zero if buyers lose this waltz to the bears.

There's today's Crypto catchup!

Thanks for reading, and please let us know if you have any questions.

Allstarcharts Team

 

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