SOL dump was predictable - how to spot the bottom?

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0x.dawg
Dec 9, 2020

The Solana price dump was predictable if not to say expected due to one harsh truth: the scariest wall of 2020:

Scary wall


This emission curve guaranteed that when going from 15% to 95% available supply in the course of a week the price would drop significantly. The fact that it did not crash faster is a sign that this truth, which was made public very early, was already priced in. Probably due to the dismay of the strategic investors.


What Santiment Social Data shows us is that at least the second wave could have been predicted:



Weighted Social Sentiment had the most prominent neg. spikes
At the same time when total social volume spiked

Is this sufficient evidence for a conviction, your honor? Only if you watch the pair closely. The Social sentiment statistic is really very dependent on a coin's community and in the case of SOLANA we also have to deal with anomalies like explosion in twitter followers in seemingly regular intervals.


One this is for sure: setting alerts on negative sentiment spikes on pairs that you hold is VERY GOOD ADVICE.

CRYPTO MARKET
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0x.dawg
Dec 9, 2020

Thanks for reading!

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