Solana flips Cardano and Dogecoin: What’s next?
- Apart from SOL’s price, the blockchain’s TVL also surged over the last few days.
- Most metrics looked bullish on SOL, but the RSI and MFI were bearish.
The entire crypto market turned bullish of late, which allowed most cryptos to paint their charts green. While the market gained momentum, Solana [SOL] surprised investors as its price registered an unprecedented high.
Read Solana’s [SOL] Price Prediction 2023-24
This happened at the time when the blockchain’s TVL spiked, which was encouraging to look at. However, a closer check of the blockchain’s ecosystem revealed that the price uptrend might not last as long as many might have expected.
Solana is outperforming the rest
While most of the cryptos registered gains, SOL somewhat took investors by surprise as its price skyrocketed over the past week. According to CoinMarketCap, SOL’s price surged by more than 25% in the last seven days. In fact, the token’s price went up by over 14% in just the last 24 hours.
At the time of writing, SOL was trading at $24.36 with a market capitalization of over $10 billion. Thanks to the recent price uptrend, Solana managed to flip Dogecoin [DOGE] and Cardano [ADA] to become the seventh-largest crypto by market cap.
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The good news was that the price uptick was accompanied by a more than 100% increase in its 24-hour trading volume, which provided support for the surge. Not only did Solana’s price surge, but its performance in the DeFi space also witnessed growth.
As reported earlier, SOL’s TVL also surged substantially over the last few days. At the time of writing, the blockchain’s TVL stood at $1.15 billion, as per DeFiLlama.
Solana’s recent performance also helped increase positive sentiment around the token. This was evident from LunarCrush’s data, which pointed out that SOL’s social engagement surged by nearly 30% over the last seven days.
Investors’ confidence in SOL was also high, as its bullish sentiment spiked last week.
Will Solana sustain the pump?
Santiment’s data revealed that SOL’s price uptick caused its 1-week price volatility to spike sharply, suggesting a further hike in its price. Solana’s open interest also went up along with its price. A rise in the metric generally means a continuation of the current trend.
Additionally, SOL’s Binance funding rate also turned green, meaning the derivatives buyers were purchasing SOL at a higher price, increasing the chances of a further uptrend.
How much are 1,10,100 SOLs worth today?
Though the aforementioned metrics supported the buyers, a look at SOL’s daily chart revealed that the scenario might change. Solana’s Relative Strength Index (RSI) entered the overbought zone, which can increase selling pressure on SOL.
Its Money Flow Index (MFI) also registered a downtick. Nonetheless, the Chaikin Money Flow (CMF) remained in the bulls’ favor.