FUNDAMENTAL OVERVIEW
The Solana
Foundation launched Solana DvP (Delivery-versus-Payment) today, an
open-source settlement infrastructure designed for financial institutions. It
allows the asset and cash legs of a transaction to settle atomically in a
single transaction, with input from J.P. Morgan. This directly targets the institutional
tokenization/settlement use case rather than just speculative crypto activity.
On the
macro side, the crypto market found some support recently from the dovish repricing in Fed interest rate expectations
after Fed’s Williams and Fed’s Jefferson pushed back against an October rate
hike. Moreover, the softer than expected US NFP report on Friday reduced the
probabilities for a near-term Fed action further, with traders now pricing just
a 21% chance of a hike in October.
Given a very light
calendar this week, the focus will likely remain on US-Iran developments. If we
get a breakthrough, we can expect oil prices to drop significantly and give Solana
a boost on lower rate hike expectations and positive risk sentiment. Another
escalation, on the other hand, will likely send crude oil higher and weigh on
the crypto market.
A prolonged
stalemate could be viewed as neutral to bullish if Treasury yields decline or
the US CPI doesn’t surprise to the upside.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the
daily chart, we can see that Solanais consolidating near the recent highs. The major upward trendline
will remain a key support, though, in case we get a pullback. The buyers will
likely lean on the trendline, with a defined risk below it, to keep targeting
the 149.00 level. The sellers, on the other hand, will look for a break lower
to extend the correction into the 97.00 support next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4
hour chart, we have a minor support zone around the 117.00 level. If we get a
pullback, we can expect the buyers to step in around the support, with a
defined risk below it, to keep pushing into new highs. The sellers, on the
other hand, will look for a break lower to extend the pullback into the major
trendline.
SOLANA TECHNICAL
ANALYSIS – 1 HOUR TIMEFRAME
On the 1
hour chart, we have a minor downward trendline defining the current pullback. The
sellers will likely continue to lean on the trendline, with a defined risk
above it, to keep pushing into new lows. The buyers, on the other hand, will
look for a break higher to pile in for a rally into new highs.
UPCOMING CATALYSTS
Tomorrowwe have the FOMC meeting minutes. On
Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude
the week with the University of Michigan Consumer Sentiment survey.
This article was written by Giuseppe Dellamotta at investinglive.com.