$EVAA just added to the position, making it larger than before.
On the charts, it is still fluctuating repeatedly in the low range after the decline, with the price moving back and forth around the high-volume area formed during the previous sell-off. On the upside, it first needs to clear the round-number threshold; on the downside, the previous low is the line of defense. If it holds, it is still bottoming out; if it breaks, it will have to search for another level.
Overall, market capital is cautious and concentrated in a few leading themes. For a non-leading hot sector like this to make an independent move, it can only rely on a surge in volume to drive it. I chose to add to my position not because I think it is about to rise, but mainly because the downside seems fairly limited and it has spent a long time moving sideways on low volume. What needs watching is that if trading volume fails to pick up, an extended period of sideways movement could easily lead to another dip.
As for its narrative, it is tied to on-chain lending. At its peak in popularity, the story was about ecosystem expansion and capital flowing into the space. Right now, the narrative is being brought back into focus, but capital has not fully bought in: more people are paying attention, but actual inflows have yet to catch up. The story has not completely lost its appeal, but it has not yet reached the point where it can reinforce itself.
Next, the key question is whether it can close above the round-number threshold on higher volume. If it does, this addition will have been well timed.
On the charts, it is still fluctuating repeatedly in the low range after the decline, with the price moving back and forth around the high-volume area formed during the previous sell-off. On the upside, it first needs to clear the round-number threshold; on the downside, the previous low is the line of defense. If it holds, it is still bottoming out; if it breaks, it will have to search for another level.
Overall, market capital is cautious and concentrated in a few leading themes. For a non-leading hot sector like this to make an independent move, it can only rely on a surge in volume to drive it. I chose to add to my position not because I think it is about to rise, but mainly because the downside seems fairly limited and it has spent a long time moving sideways on low volume. What needs watching is that if trading volume fails to pick up, an extended period of sideways movement could easily lead to another dip.
As for its narrative, it is tied to on-chain lending. At its peak in popularity, the story was about ecosystem expansion and capital flowing into the space. Right now, the narrative is being brought back into focus, but capital has not fully bought in: more people are paying attention, but actual inflows have yet to catch up. The story has not completely lost its appeal, but it has not yet reached the point where it can reinforce itself.
Next, the key question is whether it can close above the round-number threshold on higher volume. If it does, this addition will have been well timed.
