I just added to my W position, bringing it to a higher level than before. The trades and current holdings are below.
The reason for adding isn’t complicated. This asset has been pushed down from its previous rally high, and it’s now back near the dense trading zone that preceded the last uptrend. That leaves relatively little room to fall, while any move higher would run into a cluster of moving averages and overhead supply from investors trapped at higher prices. The weekly chart hasn’t yet formed a clear reversal, but the daily chart has found support in the same area several times, suggesting that buyers are willing to step in here.
The broader market is choppy but leaning positive. Risk appetite hasn’t collapsed, but we’re not in a full-on risk-on environment either. In these conditions, oversold assets are often used for rebounds, which tend not to last. So beware of false breakouts: if the price spikes but can’t hold and volume doesn’t follow through, it can easily get pushed back down. That’s why I’m adding in batches rather than going all in at once.
As for the narrative, this project is built around cross-chain interoperability—the idea that assets can move freely between different chains. This was one of the hottest themes in the previous cycle. Now it’s being talked about again, but hasn’t really heated up yet: established investors remember it, while new money hasn’t come in on a large scale. The market believes in the fundamentals, but not the valuation; investors are willing to accumulate at low prices, but don’t want to chase. So it looks more like an asset waiting for a catalyst than the sharpest trade on the table right now.
There are just two things to watch: whether it can hold this level—only then does it have a chance to rally—and whether volume picks up on any move higher. If it doesn’t, the price will likely keep grinding around within its range.
At this point, I’d rather view this as a bottoming process than the start of a major move.
The reason for adding isn’t complicated. This asset has been pushed down from its previous rally high, and it’s now back near the dense trading zone that preceded the last uptrend. That leaves relatively little room to fall, while any move higher would run into a cluster of moving averages and overhead supply from investors trapped at higher prices. The weekly chart hasn’t yet formed a clear reversal, but the daily chart has found support in the same area several times, suggesting that buyers are willing to step in here.
The broader market is choppy but leaning positive. Risk appetite hasn’t collapsed, but we’re not in a full-on risk-on environment either. In these conditions, oversold assets are often used for rebounds, which tend not to last. So beware of false breakouts: if the price spikes but can’t hold and volume doesn’t follow through, it can easily get pushed back down. That’s why I’m adding in batches rather than going all in at once.
As for the narrative, this project is built around cross-chain interoperability—the idea that assets can move freely between different chains. This was one of the hottest themes in the previous cycle. Now it’s being talked about again, but hasn’t really heated up yet: established investors remember it, while new money hasn’t come in on a large scale. The market believes in the fundamentals, but not the valuation; investors are willing to accumulate at low prices, but don’t want to chase. So it looks more like an asset waiting for a catalyst than the sharpest trade on the table right now.
There are just two things to watch: whether it can hold this level—only then does it have a chance to rally—and whether volume picks up on any move higher. If it doesn’t, the price will likely keep grinding around within its range.
At this point, I’d rather view this as a bottoming process than the start of a major move.
