I just trimmed part of my position at $EVAA , and I’m still holding the rest.
On the chart, this rally has climbed steadily from the lows. The price has now reached an area where trading was heaviest earlier—around the point where early buyers who were underwater may start breaking even. These areas are prone to repeated tests: some people will want to sell as soon as they get back to even, so selling pressure naturally emerges. Trimming a little here is simply going with the flow, not turning bearish.
The bullish case is also fairly straightforward. Buyers have stepped in on pullbacks, and there’s been no obvious drop in open interest, suggesting that some traders are still willing to go long around this level. The main risk is that this is a relatively small asset with high volatility. If the broader market turns weak, assets like this can fall hard and fast, leaving very little room for error if you chase the price.
The narrative around this ecosystem has long been built on the idea that “social channels drive user growth.” This lending project is one of the few in the ecosystem with a genuine on-chain yield use case. Capital is betting on expectations of an ecosystem recovery, rather than on the project itself. That story is being brought back into focus, but it hasn’t yet gained broad momentum: some are willing to position themselves early, but it’s not yet at the stage where everyone is piling in.
So at this point, I’d rather view this as a stretch in the middle of the move. Whether the price can hold above that earlier high-volume area is the key to whether there’s more room to run.
On the chart, this rally has climbed steadily from the lows. The price has now reached an area where trading was heaviest earlier—around the point where early buyers who were underwater may start breaking even. These areas are prone to repeated tests: some people will want to sell as soon as they get back to even, so selling pressure naturally emerges. Trimming a little here is simply going with the flow, not turning bearish.
The bullish case is also fairly straightforward. Buyers have stepped in on pullbacks, and there’s been no obvious drop in open interest, suggesting that some traders are still willing to go long around this level. The main risk is that this is a relatively small asset with high volatility. If the broader market turns weak, assets like this can fall hard and fast, leaving very little room for error if you chase the price.
The narrative around this ecosystem has long been built on the idea that “social channels drive user growth.” This lending project is one of the few in the ecosystem with a genuine on-chain yield use case. Capital is betting on expectations of an ecosystem recovery, rather than on the project itself. That story is being brought back into focus, but it hasn’t yet gained broad momentum: some are willing to position themselves early, but it’s not yet at the stage where everyone is piling in.
So at this point, I’d rather view this as a stretch in the middle of the move. Whether the price can hold above that earlier high-volume area is the key to whether there’s more room to run.
