Efficiency, scalability and democracy solana has taken an extremely unique approach to solving these problems and has increased almost 900 in the past two months and its no small project, either and now, with the market cap of 48 billion, its moved its way up to seventh place in Overall largest market market crap market crap, you know what i mean i got ta forget about it isnt it. I cant even its moved to seventh place in overall largest market cap and with these types of numbers it can be tempting to just dive right in and get invested, but getting a good entry price can be the difference of hundreds of percent. So its worth evaluating some of the fundamentals looking at some of the projects that have similar size market caps to see what we can expect now that weve seen this move from solana. So today, in this video ill be using my six years experience as a trader and investor to break down some of the fundamentals on solana, where i will be dipped buying solana on a technical level and then, finally, where i see the price moving in the short To medium term future, and if that sounds interesting to you, make sure you hit the like button on this video also, if youre new here, i make content all about day trading, crypto, investing personal finance. If those are things that interest, you make sure you hit the like button and turn on all bell notifications.

That way, you know when i post videos also, we have a free, cryptocurrency discord community, where you can stay a little bit more in loop with cryptocurrency and what im talking about what our teams talking about so ill have the link to that below if youre interested In a cool crypto environment to partake in but anyways lets start breaking down some of the fundamentals on solana, so solana is another blockchain its trying to solve the scalability issue. The speed in which transactions can take place, which i guess, sort of go hand in hand in the cost per transaction, with the first and second generation cryptocurrencies in some of the third theyre sort of capped out on how big they can get. Because of the way. The protocol is designed, the fees will get so expensive if they continue to scale without having major technological advances and it sort of puts a limit on how big they can get and thats what solana is trying to fix and the way theyre trying to fix. This is by using something called proof of history, and proof of history is a semi new concept, anatoly yak, o vanco anatoly yakovenko in in the creator of solana, anatoly yakovenko. I think i said that right, im not sure, but he published a white paper in 2017 about his concept, describing proof of history, which is a technique for keeping time between computers that do not trust one another, and by using this type of technology, synchronization of the Network can result in a blazing fast network, anatolys career started with qualcomm and dropbox, and then in 2017 he started working on the cryptos currency, which then materialized into what we know now as solana.

But this proof of history concept is to encode the trustless passage of time into a ledger. A proof of stake. Consensus mechanism is then leveraged for confirmation of the current sequence produced by the proof of history generator and the proof of stake is still used for voting and selecting the next proof of history, generator node and also for punishing any validators that act against the interest of The network itself and this proof of history technology uses clock synchronization, which is actually very similar to what google uses and actually a lot of the technology in 5g uses these concepts as well. So because of this, i totally do understand the hype behind solana and i actually think its a very good project. Overall, some of the components of their technology. I actually like better than cardano and im a huge proponent of cardanos technology in their whole concept, and i was invested in cardano pretty early on as well. That being said, i think solana is a really really good hedge against cardano failing. I think that these two cryptocurrencies could potentially be highly competitive and in ways i think solana could actually overpower cardano, which is why i think allocating some of your portfolio into solana once we see a pullback and can get in at a reasonable level, is a very Logical idea – and i will most likely be making this move as well, but what i want to do now is start to take a look at some of the numbers behind solana to figure out whats a realistic range for us to see it in.

I want to compare it to some of the moves. Weve seen on other d5 projects im going to compare it to cardano in the moves we saw from cardano after that initial hype, to see where we could realistically see the price of solana to dip down at so that we can get in with different allocations to Optimize our entry and optimize our returns moving into the short to medium term future, so market cap wise, they have 49, almost 50 billion dollar market cap and theyve, like i said before, they just moved up to seventh place overall in market cap size theyre on 500 000 watch lists which, to put that in comparison to cardano, i think cardano has 1.4 million on the watch list, so it is gaining in popularity and it is quickly gaining on the market. Cap of cardano total circulating supply is just shy of 300 million, but their total supply is 500 million. So one thing that i always like to do is take a look at the overall list of cryptocurrencies and then figure out whats a realistic market cap for us to be able to see in the short term future to predict where we could see the price and Have a realistic view of where we could see this? Take a move to so right now, like we said solanas at number: seven, its basically neck and neck with xrp and its probably going to destroy xrp. But in order for it to pass through and surpass, cardano were gon na have to pass at 75 billion and maybe by that time, even 100 billion dollar market cap on cardano, which, if we do the math on that lets, say the price doubled of solana.

Thats. Going to mean that its going to have a 95 billion dollar market cap, which is a hundred percent reasonable for what theyre doing and sort of the market share, that they could end up adopting. However, if we do see a hundred billion dollar market cap on solana, thats a pretty massive move and not to say that thats not realistic but in my opinion, gunning for that type of move before waiting for a pullback just to get you know another 100 percent. Maybe 200 max in the near future. I dont think is conducive to success when we could literally wait a little bit more get a small allocation now, so that we dont completely miss out on the move and try to turn that 100 to 200 return into more of a 300 to 600 return. So we can see right here from the bottom of this move right here. Weve made almost 900 to the high but theres. Some really really interesting technical analysis where the levels are literally hitting perfectly and i think its really important to take note of that. So that, then we can create some sort of plan as to where were going to allocate these entries so were not just getting in at the top of a parabolic move and then having to sit there in the red watch it drop off by potentially 50. You know 60 before we see that break of all time highs where we could literally change our position from only gaining 100 to 200, like i said to closer to 300 to 600 percent.

This is a very stable project, theres a lot of money behind this. So we know that theres, a high probability, were not going to lose the money as long as we just hold this long term, thats not the case with smaller projects. Smaller projects can completely go away. So the fact that we can literally get a 3 to 6x short term on solana by timing and entry is extremely worth it in my opinion – and this is something that we really have to pay close attention to as an investor. This is one of the projects that im paying very, very close attention to, because this is a huge opportunity potentially and we dont want to let it slip away. This is not a bs cryptocurrency. This is not dogecoin. Okay. This is not xrp where its super speculative. There is a use case that is being used right now, for this validators are continuing to increase on this network, and the technology is similar to what theyre doing with 5g. I see them being highly competitive with cardano, and a lot of the market share could be absorbed by this, but we need to be smart about where were getting our average price, and i think that thats, what we need to hone in on right now so start Off with im gon na take this overall trend line right here um. This is showing us our baseline for the trend like what we always do.

Something thats interesting to take note of is, if we look at this beginning of this overall trend, im going to straighten this out just a bit here, so i like to get it as close to perfect, as we can just because its always just better to do That, obviously, if we take the swing low to swing high on this initial move with the fibonacci retracement tool, we get this crazy, pullback and its so sad that i didnt see this at the time. But we got this perfect pull down to the 61.8 level, and that was the exact turnaround point before we saw this massive move and thats. That does not happen accidentally, okay, this can be used for us moving forward with other future price action and thats. How were going to start quantifying this move, so what i also identified was obviously a wave structure which is similar to what we normally do with elliott wave theory. Okay, we have our initial wave right here, followed by the two corrective wave, this potentially being the third wave all together, so im gon na get rid of this real quick. We already know what percent gain it took. This could be potentially the third wave, which means that were now in the beginning, potentially of the fourth wave, which could then drop down to potentially the high of this one wave. But the being that solana is so strong. It doesnt always have to come down and really retest those lows so whats, a more realistic expectation is to play it off of one of these fibonacci values.

Sort of fractaled out to this overall larger move. Something really interesting to sort of confirm our bias on this move is oftentimes and ill get rid of this fibonacci oftentimes when were looking at elliott waves, the top of the fifth or third wave can oftentimes be predicted with multiples of the one six one eight value. So if we find this one wave to be our one factor, we can multiply that by the golden ratio to find these levels where parabolic moves can end up, exhausting and if we do, if we draw perfectly from this level to this level and shoot up the 361.8, multiple, its literally nailing it perfectly to the all time high of where solana has just moved. This could potentially be the third or fifth wave, which is why we have to pay attention to the price action moving forward, but nonetheless, what i did was. I drew this overall fibonacci and im noticing that this 161.8 retracement level is very, very close to the 61.8 retracement level on the overall trend. So what i did was i identified several levels that i think are going to be good dip by levels, the first being the 50 level. The 50 level is known as a continuation level on fibonacci retracements. This is a very bullish level if we get a reaction. Point off of that, and even though solana is overvalued in the rsi and the macd is now starting to cross over moving down which, on a technical level, is leading us to believe this price action should pull down.

There is a chance if we dont get a selloff in cryptocurrency, that this wont make its way all the way down to the 61.8 or this 161.8 level. But i do see it coming down to that hundred level being that it is a psychological level and also this is the 50 continuation level. So we have one level at the 50 level one buy level at the 61.8 and then we have one at the crest of high in case this is the third coming down to four and four fully retests, the top of one like, i said, thats sort of A long shot situation, but we wan na still personally save some allocation for that, because if we can nail that exact bottom, the difference in gain that were going to make is absolutely crazy and these concepts of being able to use technical analysis to optimize your entries Is something that we use to actively trade cryptocurrencies to generate regular profits in our premium? Cryptocurrency trading course. Not only can you take short term trades to generate income, but you can also drastically improve your investing knowing these concepts if youre interested. I will put that link in the description and in a card right here and if we look at the move that cardano made initially once it got a type and then hit its first all time high, we had an eighteen hundred percent gain to all time. High followed by a sixty percent sell off before we saw that another two hundred percent run up to three dollars.

So, even though cardano is a healthy project that most people believe in at least to some degree after we saw that pera move and it really started to take some dominance. We still saw huge parabolic, sell off mind you. This was when bitcoin also sold off, but its not abnormal, to see from low here up to a high for us to see a retest of the 61.8 or at least the 50 level, before seeing continuation in a second move up now. Obviously, this doesnt guarantee that were going to see a comparable move in solana. However, i personally dont see this making another parabolic run too highs without having a significant pullback and even if it does, even if i miss these dip by levels, and this continues to make a run up higher. I dont see this parabolic move not coming back to this level, where i can buy in right now at so its either. I wait and then re buy once this move pulls down and i can get in at the level that i could get in right now or we get a semi immediate price pole down to the 50 61.8 in the top of one, in which case we can Sprinkle our allocation in there to get a good average cost, and i want to show you the importance of doing that, and this is something thats oftentimes overlooked in the investment world. So we talked about the price potentially doubling for solana to basically have a hundred billion dollar market cap, which would be very comparable to cardanos largest market cap, which i think it has a fair possibility of doing.

But if we are to see that 320 level from this current price thats only a hundred percent gain, and while we can be fairly confident that this could happen, if were just slightly more careful and can time our entries at least personally down to the 61.8 level, We can now get allocations of those coins now getting 300 returns just by waiting to be a little bit smarter. On an entry like, i said, we should get some exposure now, because this move might not happen, but its important to understand how getting in slightly lower on the beginning of an exponential move is going to change the returns that you get long term by so much And its really really important so as much as solana, i believe, is a great project and that i think, could at least double within the year. I do think that were going to get a short term sell off in price action, just because this move was absolutely ridiculous and we could see the 50 or the 61.8 as an allocation. So what i will be doing is taking 50 allocation of a total 10 total portfolio allocation as a hedge against cardano and ill be adding 50 of that allocation at the 50 level and then ill be adding 25 at the current market price and 25. If we are to see this pull down to the top of one, because if we do see, you know a pullback down to this original level, that means that were seeing an over 400 return again, which is quite possible.

If we see bitcoin sell off a little bit and having solana take a major pullback, the only way i see it really going down as low as this is, if we do see a sell off in bitcoin, but we could definitely see that as well. So you want to have a plan in place, even though you dont think its going to happen and thats something that we also teach in our premium section. We always have a game plan of where to dip buy cryptocurrencies, even though we dont think the market is going to pull back a lot of times when it does, people are scrambling to try to think of a plan and they start acting emotionally and it can Cost you money from my experience trading and investing. You always have a game plan of where youre going to enter the market and exit the market. Youre always going to have those dip by ad levels using technical analysis, but moving into the next short term to medium term future. I could definitely see solana over 300 into that 500 range and i could easily see it with 125 to 150 billion dollar market cap. If they continue to move forward with the technology that theyre developing right now and see the adoption that weve been seeing in the hype that weve been seeing, i could see it directly competing with cardano and being a great project. I just think its really necessary to be smart about when were getting into things and not just load the boat at the top of parabolic moves, but anyways guys just wanted to cover my position on solana.

For you guys, i think these concepts are really important.