Our prior analysis of Bitcoin remains valid as it continues its upward trend, maintaining its position above the $37,000 level. Here's a review of the market situation for Solana (SOL) and dYdX (DYDX) as of Tuesday, November 21.
Solana (SOL)
Solana has been following an upward trend. The asset has increased by 400% in the past two months, one of the best performance rates among altcoins in the top 100 by market capitalization.
SOL is currently trading between the support zone of $51.2-$54.7 and the resistance range of $62-$68. The most likely scenario remains a continuation of the growth trend. If Bitcoin's upward trend continues, SOL might test the next highs at $70 and $75.
Any correction in Bitcoin's chart is likely to similarly affect SOL's price. The next support levels for SOL lie at $47.2 and within the range of $37.80-$42. A rapid and voluminous decline in BTC could lead to Solana losing many of its support zones, thus making trading with limit orders highly risky at this moment.
SOL chart on the H3 timeframe
dYdX (DYDX)
DYDX has surged more than 200% over the first three weeks of November. This growth is primarily linked to the cryptocurrency project's recent launch of its own blockchain, which increased the visibility of the dYdX exchange and boosted the demand for its token.
At present, DYDX is trading between a support zone of $2.80-$3.15 and a resistance range of $3.50-$3.75. A slightly higher seller's zone is observed at $4.00-$4.35. Testing this higher range is seen as the next step in maintaining the upward trend. Nevertheless, the likelihood of reaching a new yearly high seems uncertain due to the gradual waning of the buying momentum.
In the event of a correction, DYDX could potentially fall back to support levels of $2.15-$2.40 and $1.8-$2.0. It's also crucial to consider fundamental factors, such as the significant unlocking of DYDX coins that took place at the beginning of November. In a scenario where the price drops, the market might witness a substantial sell-off of coins, which could further negatively affect the asset's price.
DYDX chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
