Round up of today’s market news

North American News

Major US Indices End Day Lower; Nasdaq Retreats

Market Summary:

• Dow Industrial Average: -91.46 points (-0.22%) at 42,141.60
• S&P 500: -19.18 points (-0.33%) at 5,813.74
• Nasdaq Index: -10.42 points (-0.06%) at 18,607.93 (off a record close from yesterday)
• Russell 2000: -5.05 points (-0.23%) at 2,233.03

Earnings Highlights

Microsoft (MSFT)

• Earnings Per Share (EPS): $3.30 vs. $3.10 expected, a 10% year-over-year increase.
• Total Revenue: $65.6 billion, exceeding the $64.5 billion estimate, marking a 16% growth YoY.
• Cloud Revenue: Reached $38.9 billion, surpassing the $38.19 billion estimate, showing a 22% increase from the previous year.
• Segment Revenues:
  • Productivity and Business Processes: $28.3 billion (up 12% YoY)
  • Intelligent Cloud: $24.1 billion (up 20% YoY)
  • More Personal Computing: $13.2 billion (up 17% YoY)
• Key Metrics:
  • Azure and other cloud services grew by 34% YoY.
  • The company reported strong demand across its cloud products and services.
• Outlook: Guidance for the upcoming quarter is expected to be provided during the earnings call.
• Shares: Trading up 2.18% at $442.51, reflecting positive market sentiment towards strong earnings and revenue growth.

Meta Platforms (META)

• Earnings Per Share (EPS): $6.03 vs. $5.24 expected, representing a 37% increase YoY.
• Total Revenue: $40.59 billion, beating the estimate of $40.27 billion, up 19% from the previous year.
• Advertising Revenue: Came in at $39.89 billion, slightly above the $39.71 billion forecast.
• Capital Expenditures: Estimated between $38 billion and $40 billion for ongoing investments.
• Key Metrics:
  • Ad impressions rose by 7%, while the average price per ad increased by 11%.
  • Operating income grew to $17.4 billion, reflecting a 26% rise YoY.
  • The company ended the quarter with $70.9 billion in cash and marketable securities.
• Guidance: Meta expects Q4 revenue between $45 billion and $48 billion.
• Shares: Trading down 1.80% at $581.02, likely due to a modest pullback despite strong earnings.

MGM Resorts International (MGM)

• Earnings Per Share (EPS): $0.54, falling short of expectations of $0.61.
• Total Revenue: $4.2 billion, in line with expectations of $4.21 billion.
• Key Metrics:
  • Continued strong performance in the Las Vegas market, but challenges in international markets were noted.
  • Recent investments in property upgrades were highlighted, which are expected to pay off in the long term.
• Shares: Trading down 4.85%, reflecting disappointment over EPS miss despite meeting revenue expectations.

DoorDash (DASH)

• Earnings Per Share (EPS): $0.38, beating expectations of $0.21.
• Total Revenue: $2.7 billion, exceeding the $2.66 billion forecast.
• Key Metrics:
  • Continued growth in active users and order frequency, indicating strong demand for delivery services.
  • Increased market penetration in new geographical areas was cited as a significant growth driver.
• Shares: Trading down 0.81%, possibly due to broader market trends overshadowing positive results.

Starbucks (SBUX)

• Earnings Per Share (EPS): $0.80, below expectations of $1.03.
• Total Revenue: $9.07 billion, missing the $9.38 billion target.
• Key Metrics:
  • Experienced a 3% decline in consolidated net revenues, driven by a 7% drop in global comparable store sales.
  • U.S. store sales fell 6%, while China experienced a sharper 14% decline.
  • The company opened 722 new stores, bringing the global count to over 40,000.
• Outlook: Guidance suspended due to CEO transition and current business challenges.
• Shares: Trading down 1.28%, reflecting investor concern over declining sales and uncertain guidance.

Coinbase (COIN)

• Earnings Per Share (EPS): $0.43, meeting expectations.
• Total Revenue: $1.20 billion, missing the forecast of $1.25 billion.
• Key Metrics:
  • The company reported fluctuating trading volumes due to recent market volatility, affecting revenue.
  • Focused on expanding its product offerings and international presence.
• Shares: Trading down 6.00%, likely reacting to revenue miss amid a challenging crypto market environment.

Aflac (AFL)

• Earnings Per Share (EPS): $2.16, beating expectations of $1.68.
• Total Revenue: $2.90 billion, falling short of the $4.42 billion estimate.
• Key Metrics:
  • Solid EPS growth, driven by improved underwriting results.
  • Increased focus on international markets is expected to bolster future growth.
• Shares: Trading down 1.54%, reflecting disappointment over revenue miss despite strong earnings performance.

eBay (EBAY)

• Earnings Per Share (EPS): $1.19, meeting expectations of $1.18.
• Total Revenue: $2.6 billion, exceeding the forecast of $2.55 billion.
• Key Metrics:
  • Positive growth in buyer engagement and transaction volume was highlighted.
  • Ongoing enhancements to the platform and user experience continue to attract users.
• Shares: Trading down 9.66%, likely due to market sentiment and broader tech sector pullback.

Conclusion

Today’s trading saw major indices close lower, with the Nasdaq backing off slightly after reaching a record high. Earnings reports from tech giants like Microsoft and Meta showcased strong performances, albeit with mixed reactions in share prices. As market participants digest these results, attention will be on further economic indicators and upcoming earnings.

US pending home sales for September +7.4% versus 1.0% estimate

• US pending home sales for September 2024

• Prior month +0.6%
• Pending home sales 7.4% versus 1.0% expected
• Home sales index 75.8 versus 70.6 last month
• Sales up 2.6% year on year

Regionally:

• Northeast +6.5%
• West +9.8%
• Midwest 7.1%
• sound 6.7%

Core PCE Advanced for Q3 comes in at 2.2% vs 2.1% estimate

• The monthly PCE data will be released tomorrow. This is the quarterly number

• Prior quarter 2.8%
• Advanced Core PCE 2.2% vs 2.1% estimate
• PCE advanced 1.5% vs 2.5% prior
• Ex food and energy and housing 1.6% vs 2.3% prior
• PCE services ex Energy and housing 2.6% vs. 3.0% prior

US Q3 advance GDP +2.8% vs +3.0% expected

• The first look at USA growth numbers for the third quarter of 2024

• Final Q2 GDP was 3.0%

• Consumer spending (PCE): +3.7% annual rate
• Durable goods: +8.1%
• GDP final sales (excluding inventories): +3.0%
• GDP price index (GDP deflator): +1.8%
• Core PCE (excluding food & energy): +2.2% vs +2.1% expected
• PCE price index 1.5%
• Business investment (nonresidential fixed investment): +3.3%

Contributors and subtractors to the 2.8% growth:

• Consumption: +2.46% vs +1.90% prior
• Government: +0.85% vs +0.52% prior
• Net International trade: -0.56% vs -0.90% prior
• Inventories: -0.17% vs +1.05% prior

The final Atlanta Fed GDPNow reading was 2.8%.

US October ADP employment +233K vs +114K expected

• ADP October 2024 data

• Prior was +143
• Annual pay growth for job-stayers 4.6% vs 4.7% prior
• Job-changers’ pay gains 6.2% vs 6.6% prior
• Services +211K vs +101K prior
• Goods +22K vs +42K prior

“Even amid hurricane recovery, job growth was strong in October,” said Nela Richardson, chief economist, ADP. “As we round out the year, hiring in the U.S. is proving to be robust and broadly resilient.”

US MBA mortgage applications w.e. 25 October -0.1% vs -6.7% prior

• Latest data from the Mortgage Bankers Association for the week ending 25 October 2024

• Prior -6.7%
• Market index 214.5 vs 214.8 prior
• Purchase index 137.8 vs 131.3 prior
• Refinancing index 630.0 vs 672.6 prior
• 30-year mortgage rate 6.73% vs 6.52% prior

US Treasury says it doesn’t expect to raise coupon auction sizes for next several quarters

• Highlights of the Treasury refunding announcement

The Treasury maintained the language in the quarterly refunding announcement that said they didn’t expect a need to raise coupon auction sizes for the next several quarters. This was largely expected was coupled with no surprises for coupon sizes at:

• $58B in 3s
• $42B in 10s
• $25b in 30s

Overall the announcement includes $125 billion of refunding at $8.6 billion in new cash. A lone change is that 5-year TIPS will increase to $22B from $21B in December.

Shares of Super Micro fall 34% as auditor quits

• Ernst & Young quits and says it was “unwilling to be associated with the financial statements prepared by management.”

Short sellers took aim at Super Micro (SMCI) earlier this year and it appears as though they were onto something. The company revealed today that auditor Ernst & Young quit and said it was “unwilling to be associated with the financial statements prepared by management.”

“We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” the accounting firm said.

Shares are down 34% premarket to $33.90 and back to flat on the year. The company was a Q1 darling as it rode the AI wave to a tripling of the share price.

Super Micro has still not issued its financial statements for this year, and there are reports that it is under federal investigation.

At its peak Super Micro’s market cap exceeded $50 billion, which is close to the $60 billion peak of Enron.

Commodities

Gold Hits Another Record High; Approaches $2800

Current Price: Gold is trading at $2789.38, up $15.20 or 0.55%.

Price Action Summary

Gold continues its upward trajectory, now hovering near a channel trendline on the daily chart. If the price surpasses the $2790 resistance level, a swift move toward the next key target of $2800 is anticipated.

Performance Overview

• Since July 15: Gold has risen 18.54%.
• Since May 3: The increase stands at 22.49%.
• Since the end of last year: Gold has gained a substantial 35.24%.

Technical Indicators and Future Outlook

• Resistance Levels: Breaking above $2790 could trigger further buying interest, propelling gold towards the psychological barrier of $2800.
• Market Sentiment: The sustained rally reflects strong demand for gold amid economic uncertainties, further fueling bullish sentiment among investors.

Conclusion

As gold prices stretch toward the $2800 mark, traders should closely monitor resistance levels and market dynamics. A breakthrough could signal a continuation of this upward trend, bolstered by the impressive gains observed over the past months.

US crude oil inventory for the current week -0.515M vs 2.300M estimate

• The weekly inventory data from the EIA shows:

• crude oil inventories -0.515M vs. 2.300M estimate
• Gasoline inventories -2.707M vs 0.600M estimate
• Distillates inventories -0.977M vs -1.595M estimate
• Cushing 0.681M vs -0.346M last week
• Crude production 13.5 million barrels versus 13.5 million barrels previously.

OPEC+ could delay oil production hike scheduled for December by one month or more

• Reuters report

OPEC+ plans to slowly reintroduce curbed production in December but a Reuters report said they could delay the hike by one month or more, citing three sources.

US oil and gas production climbed to record highs under Biden, this election won’t impact

• US election outcome isn’t likely to have a big impact on commodities such as energy in short term

Capital Economics argues:

• “The outcome of the U.S. election won’t have a sizeable impact on most commodity prices over the next few months,”
• “Instead, differences between the candidates’ views on vehicle emissions, [liquified-natural-gas] exports and foreign-policy stance on Iran could affect oil and [natural-]gas prices over the next five years.”
• US oil and gas production climbed to record highs under President Joe Biden … Harris has not outlined any plans to regulate the sector more than Biden
• While perceptions are that Trump will try to remove subsidies for electric vehicles or weaken vehicle-emission standards, and thus lead to higher U.S. oil demand … Trump’s friendship with Tesla Inc. Chief Executive Elon Musk suggests that the “status quo may be maintained and that the U.S. vehicle fleet will steadily become more fuel efficient as electric- and hybrid-vehicles sales rise”

Goldman Sachs forecast gold to climb higher than previously expected, target $2,900 /ounce

• Central banks in emerging markets have ramped up purchases says GS

Goldman Sachs Research anticipates a bullish outlook for gold, projecting prices to reach $2,900 per ounce by early 2025, up from a prior forecast of $2,700. This optimism is largely attributed to a surge in gold purchases by central banks, especially in emerging markets. Traditionally, gold prices align closely with interest rate trends—lower rates often boost gold’s appeal as a non-yielding asset. However, significant central bank buying since 2022 has shifted this dynamic, with Goldman estimating that an additional 100 tonnes of physical gold demand can lift prices by around 2.4%.

This surge in demand is partly driven by a desire for financial security, especially after the freezing of Russian central bank assets in 2022, which raised concerns over sanctions risks. Emerging market central banks, which typically have smaller gold reserves compared to developed nations, appear to be “catching up” as a buffer against potential geopolitical and fiscal risks. With the U.S. debt at 124% of GDP, policymakers are increasingly wary of overreliance on U.S. Treasury bonds.

Western investor interest in gold is also picking up, particularly in light of the upcoming U.S. presidential election and heightened concerns over trade tensions and fiscal stability. Although many investors are cautious about gold’s record-high prices, Goldman Sachs expects Western-held gold ETFs to gradually increase as interest rates fall, potentially leading to a competitive dynamic between central banks and investors for gold reserves.

EU News

Eurozone October final consumer confidence -12.5 vs -12.5 prelim

• Latest data released by the European Commission – 30 October 2024

• Prior -12.9
• Economic confidence 95.6 vs 96.3 expected
• Prior 96.2; revised to 96.3
• Industrial confidence -13.0 vs -10.5 expected
• Prior -10.9; revised to -11.0
• Services confidence 7.1 vs 6.6 expected
• Prior 6.7; revised to 7.1

Eurozone Q3 preliminary GDP +0.4% vs +0.2% q/q expected

• Latest data released by Eurostat – 30 October 2024
• Prior +0.2%

Germany prelim HICP 2.4% vs 2.1% expected

• The national German numbers

• Prior was 1.8%
• m/m HICP +0.4% vs +0.2% exp
• CPI +2.0% y/y vs +1.8% exp
• CPI +0.4% m/m vs +0.2% exp

Bavaria October CPI +2.4% vs +1.9% y/y prior

• Latest data released by Destatis – 30 October 2024

The other state readings released around the same time:

• Brandenburg CPI +% vs +1.4% y/y prior
• Hesse CPI +1.8% vs +1.2% y/y prior
• Saxony CPI +2.8% vs +2.4% y/y prior
• North Rhine Westphalia CPI +2.0% vs +1.5% y/y prior
• Baden Wuerttemberg CPI +2.1% vs +1.4% y/y prior

Germany Q3 preliminary GDP +0.2% vs -0.1% q/q expected

• Latest data released by Destatis – 30 October 2024
• Prior -0.1%

Germany October unemployment change 27k vs 15k expected

• Latest data released by the Federal Employment Agency – 30 October 2024

• Prior 17k
• Unemployment rate 6.1% vs 6.1% expected
• Prior 6.0%

France Q3 preliminary GDP +0.4% vs +0.3% q/q expected

• Latest data released by INSEE – 30 October 2024
• Prior +0.2%

French Q3 GDP comes in at a beat, with household consumption especially showing a marked improvement compared to the previous quarter. Again, that owes much to the Olympics though so there’s that to keep in mind. Here is the breakdown of the components:

Spain October preliminary CPI +1.8% vs +1.8% y/y expected

• Latest data released by INE – 30 October 2024

• Prior +1.5%
• HICP +1.8% vs +1.8% y/y expected
• Prior +1.7%

Spain Q3 preliminary GDP +0.8% vs +0.6% q/q expected

• Latest data released by INE – 30 October 2024
• Prior +0.8%

It’s a beat on estimates and once again, the Spanish economy continues to show that it is definitely punching above its weight in contributing to the overall Eurozone performance. On an annual basis, Q3 GDP is seen expanding by 3.4% and beating expectations of a 3.0% reading.

Italy Q3 preliminary GDP 0.0% vs +0.2% q/q expected

• Latest data released by Istat – 30 October 2024
• Prior +0.2%

Switzerland October KOF leading indicator index 99.5 vs 105.0 expected

• Latest data released by KOF – 30 October 2024
• Prior 105.5; revised to 104.5

Alongside a softer revision to the month before, it’s a negative take on Swiss economic conditions as we look towards year-end. 

Switzerland October UBS investor sentiment -7.7 vs -8.8 prior

• Latest data released by UBS – 30 October 2024
• Prior -8.8

ECB’s Schnabel: Disinflation remains on track, but inflation fight is not yet won

• ECBs Schnabel is speaking

• Disinflation remains on track, which allowed the ECB to lower rates further in October
• Warns that the fight against inflation is not yet won.
• A gradual approach to removing restriction remains appropriate.
• Neutral rate is subject to high uncertainty.
• No need to go below neutral
• Risk of meaningful and persistent undershoot in of inflation target remains small
• Headline inflation remain a bit of the due to energy.
• We will get inflation back to 2% target in sustainable manner next year.
• Inflation to remain a bit bumpy due to energy.
• We expect wage growth remains highest year and rather bumpy
• Data today is the first indication that we have reached a turning point.
• Relatively strong consumption data in Germany and France give some hope for a turnaround
• Geopolitical risks have increased significantly.
• Major worry is protectionism, in light of US election.
• Expect more frequent supply-side shocks, which will have impact on inflation.

Chair Schlegel – Ready to intervene in currency markets as necessary

• Remarks by SNB chairman, Martin Schlegel

• Swiss franc is a safe haven, it appreciates in times of uncertainty
• SNB ready to intervene in currency markets as necessary
• Ready to react to pressure on the franc as well

Earlier:

• ICYMI, comments from Chairman of Swiss National Bank (SNB) Martin Schlegel

Swiss National Bank Chairman Martin Schlegel spoke on Tuesday:

“In the coming quarters, further interest rate reductions could be needed to maintain price stability in the mid-term”

“The good news is that our inflation forecasts show inflation in the area of price stability in the long term”

SNB forecasts for average inflation rates:

• 1.2% in 2024
• 0.6% in 2025
• 0.7% in 2026

UK budget: Commerzbank analysts optimistic about long-term growth potential

• Commerzbank analysts predict GBP gains

The UK budget is due later today, Wednesday, October 30, 2024.

Commerzbank analysts give a heads up for GBP gains:

• if the budget combines austerity with hope of tackling long-term investment
• “This should be positive for the pound as it would strengthen the U.K.’s long-term growth potential”
• government faces a challenge in facilitating investment so that it ends years of underfunding in the public sector
• Challenge is that the UK has spent more than it has earned in recent years, making the fiscal situation difficult

Asia-Pacific-World News

PBOC sets USD/ CNY mid-point today at 7.1390 (vs. estimate at 7.1398)

• PBOC CNY reference rate setting for the trading session ahead

In open market operations (OMOs):

• PBOC injects 431bn yuan via 7-day RR, sets rate at 1.5%
• 793bn yuan mature today
• net drain is 362bn yuan

Australian Q3 inflation headline 2.8% y/y (expected 2.9%)

• Q3 and September month inflation data for Australia – it’s the quarterly data that is of most focus

Inflation data from Australia for the July – September quarter and for September month.

• 2.8% y/y headline, below the top of the RBA target band of 2 – 3%.
• Trimmed means is a core measure, comes in at 3.5% y/y

The other measure of core inflation is ‘weighted median’:

0.9% q/q

• expected 0.8%, prior 0.8%

3.8% y/y

• expected 3.6%, prior 4.1%

Japan October consumer confidence index 36.2 vs 36.9 prior

• Latest data released by the Japan Cabinet Office – 30 October 2024

Looking at the details:

• Overall livelihood: 34.2 (previously 34.4)
• Income growth: 39.4 (previously 40.1)
• Employment: 41.6 (previously 42.2)
• Willingness to buy durable goods: 29.7 (previously 31.0)

Eastern Japan exits “zero nuclear power plants” – Onagawa 2 shut in 2012, restarted now

• Plant is north of Fukushima

AP with the report:

• A Japanese nuclear reactor which survived a massive 2011 earthquake and tsunami that badly damaged the nearby Fukushima nuclear power plant was restarted Tuesday for the first time since the disaster after a safety upgrade, as the government pursues a renewed expansion of nuclear energy to provide stable power and reduce carbon emissions.
• The No. 2 reactor at the Onagawa nuclear power plant on Japan’s northern coast was put back online and is expected to start generating power in early November
• reactor is one of the three at the Onagawa plant, which is 100 kilometers (62 miles) north of the Fukushima Daiichi plant where three reactors melted following a magnitude 9.0 earthquake and tsunami in March 2011
• The Onagawa plant was hit by a 13-meter (42-foot) tsunami but was able to keep its crucial cooling systems functioning in all three reactors and achieve their safe shutdowns.

Bank of Japan Policy Meeting Preview

• BOJ meeting concludes Thursday, October 31

A brief summary of a long piece from Reuters on what to expect from the BoJ this week.

• BOJ meeting concludes Thursday; rates expected to stay unchanged at 0.25%
• Weekend election loss complicates BOJ’s normalization path
• USD/JPY hit 3-month highs near 153.50 as markets bet on delayed hikes
• BOJ’s in no rush with inflation stable around 2%
• Quarterly outlook report unlikely to show major forecast changes
• Political uncertainty after ruling coalition’s defeat adds new wrinkle
• Most economists now see no hike until 2025 Q1

The wild card? Ueda’s tone at the press conference (3:30pm Tokyo/0630 GMT Thursday). Watch for:

• Any shift from September’s dovish “we can afford to wait” stance
• Fresh warnings about yen weakness (dollar/yen’s been on a tear)
• Hints about wage growth expectations for 2025

Bottom line:

• The path to BOJ’s “neutral” 1% rate target looks bumpier after the election. Ishiba’s weakened position means he’ll need support from parties favoring ultra-loose policy. That’s not great news for yen bulls.

Cryptocurrency News

Ethereum’s Potential Deflationary Shift Amidst Rising Demand

Current Price: Ethereum (ETH) is trading at $2,680, reflecting a 0.5% increase today. The cryptocurrency aims to overcome the $2,817 resistance level in the coming days, particularly as the US presidential elections approach.

Key Drivers of Ethereum’s Price Movement

• Rising Demand for Layer 2s: Ethereum’s burn rate could increase if demand for Layer 2 solutions (L2s) continues to grow. Following a successful test by game developer Cartridge on the Starknet chain, blobspace on Ethereum reached its fourth price discovery since the Dencun upgrade in March.
• Blobspace Features: Introduced in the Dencun upgrade, blobspace provides additional storage for L2s on the Ethereum Mainchain, reducing transaction costs. While this feature initially caused a supply expansion of ETH due to decreased burn rates, the recent surge in L2 activity could reverse this trend.
• Inflationary Concerns: Previously, the fee reduction from blobspace contributed to Ethereum becoming inflationary, raising questions about the long-term sustainability of L2s. However, the saturation of blobspace during the recent test has led to a re-evaluation, suggesting that increased L2 demand could bolster the ETH burn rate and potentially support price appreciation.
• Projected Burn Rates: A simulation indicates that if L2s scale Ethereum to 10,000 TPS, the daily ETH burned could exceed $45 million at a price point of $3,000, fueling deflationary pressures and possibly elevating ETH’s price significantly.

Political Impacts on Ethereum’s Outlook

Bitwise CIO Insights: In a recent interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise, suggested that Ethereum could rally more than Bitcoin in the event of a Donald Trump victory in the upcoming US presidential election. He pointed out that a Trump administration could lead to regulatory clarity from the Securities & Exchange Commission (SEC), particularly benefiting altcoins like Ethereum.

“I think the regulatory clarity you’re talking about actually matters more for the so-called altcoins, for Ethereum on down,” Hougan noted, expecting an altcoin rally if Trump wins.

Market Activity and Trends

In related news, Ethereum exchange-traded funds (ETFs) experienced net inflows of $7.6 million on Tuesday, indicating growing interest and investment in Ethereum amidst the evolving market dynamics.

Conclusion

Ethereum is poised for potential upside as it approaches critical resistance levels, particularly driven by increased Layer 2 demand and the possibility of favorable regulatory changes. The upcoming political landscape could significantly influence Ethereum’s trajectory, positioning it as a strong contender in the cryptocurrency market.

Bitcoin Struggles to Break New Highs; March Peak Remains Unchallenged

Current Price: Bitcoin (BTC) has backed off from its recent gains, trading at $71,991, down $738 or -1.01%.

Price Action Summary

Bitcoin surged sharply yesterday, reaching an intraday high of $73,600, just $200 shy of the all-time high of $73,794 set in March. However, today’s trading has seen a decline as the price moved outside the established swing area of $71,958 to $73,794, dropping to a low of $71,313.

Technical Indicators and Resistance Levels

• Resistance Levels: To regain upward momentum, Bitcoin needs to reclaim levels above the 100/200 bar moving averages at $71,988 and $72,197, respectively, as well as break through the downward sloping trend line near $72,340.
• Market Sentiment: The inability to extend beyond the March high indicates that sellers are maintaining control at these resistance levels, which could lead to further price consolidation or potential downside if the support levels are breached.

Conclusion

As Bitcoin retraces from its recent peak, the March high remains intact. Traders should monitor key resistance levels and the overall market sentiment to gauge potential future movements. The ability to reclaim these crucial technical levels will be pivotal in determining whether Bitcoin can mount another challenge toward its all-time high.

Solana Poised for a Potential Break Above $190 Amid Rising Network Activity

Current Price: Solana (SOL) is trading at $176, following a correction from Tuesday’s high of $183, which was propelled by Bitcoin’s recent surge toward its all-time high.

Key Catalysts for Solana’s Price Movement

• Rising Network Activity: Recent on-chain data indicates that the number of unique active wallets (UAW) has more than doubled in the past five days, increasing from 3.06 million to 6.19 million. This surge, alongside the growth in transaction volume and count, suggests heightened interest and demand from traders.
• Transaction Metrics: The volume of SOL traded climbed from $126.46 million on October 26 to $163.09 million on October 29, with a peak of $341.1 million on October 25. Additionally, the number of transactions rose from 17.4 million to 19.2 million, indicating robust activity on the network.

Solana Technical outlook

Despite a 2% decline on Wednesday, the outlook for SOL remains optimistic, supported by technical indicators. If the uptrend continues, SOL could target the lower boundary of the Fair Value Gap (FVG) between $193.69 and $192.24, representing a potential 9% increase from current levels.

• Technical Indicators: The Moving Average Convergence Divergence (MACD) shows green histogram bars above the neutral line, indicating positive momentum. Traders should monitor this closely; if the histogram turns red and dips below the neutral line, it may signal a price reversal.
• Support Levels: Should the recent correction develop into a more significant pullback, Solana may find support at the 10-day Exponential Moving Average (EMA), currently at $156.03.

Conclusion

With strong network activity and bullish technical indicators, Solana is well-positioned to potentially break above the $190 level in the near future. Traders should keep an eye on market trends and technical signals to navigate the upcoming price movements effectively.

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