Journalist
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Key Takeaways
Somnia’s mainnet went live on the 2nd of September, and the token was listed on several centralized exchanges. This saw the L1 token register sizeable gains quickly.
Somnia [SOMI] has rallied 316% from its 4th of September low at $0.38. This bullish momentum followed the spree of exchange listings SOMI crypto saw on the 2nd and 3rd of September.
It was listed on major exchanges, including Binance, Bybit, and Bitget.
The $253 million market cap L1 blockchain token saw a $1.17 billion daily trading volume in the past 24 hours.
This was a remarkable volume for the relatively small-cap token, and meant that investor conviction was strong and more gains could follow.
The token has deflationary tokenomics, with 50% of the transaction fees burned. SOMI crypto supply is capped at 1 billion tokens. The mainnet launch came on the 2nd of September.
The L1 blockchain claims it is “built for speed” and is capable of 1 million transactions per second with sub-second finality.
Technical analysis showed $2+ targets for SOMI crypto
Source: SOMI/USDT on TradingView
Somnia was in a strong uptrend on the 1-hour timeframe. Since it has only been trading for a few days, the higher timeframes would be ill-suited for technical analysis.
Fibonacci retracement and extension levels work better.
The $1.35 and $1.2 levels were the key Fibonacci retracement support levels for SOMI crypto bulls to defend. The moving averages were also dynamic supports that should be defended.
Beyond $1.9, the $2.11, $2.35, and $2.45 extension levels were the next price targets. The CMF showed strong capital inflows and the MFI also signaled bullish momentum with no bearish divergence at play.
The past 24 hours of trading saw a price gain of 47.3% for SOMI. The Open Interest increased by 33%. The rapid growth in price and OI showed that speculators were willing to continue going long alongside bullish gains.
The spot CVD also climbed higher over the past 24 hours, indicating demand. Traders should be prepared for volatility since speculative activity was high, and liquidity hunts were more likely.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
