Solana’s native token SOL registered a promising uptrend lately as its price grew over 10% in the last seven days. The price surge gave hope to investors for brighter days ahead.
Though there have been several positive developments in the community in the past few days, the stability of this hike is still questionable.
Several metrics suggest that the spike was a result of nothing more than a reaction to the current bullish market. Let’s take a look into what is actually going on in the ecosystem.
What’s up SOL?
Recently, SOL outperformed several cryptos with higher market capitalization by making it to the list of the top cryptos by total stacked value.
#Solana is asserting its position firmly day by day ⚡️
Thanks to data from @StakingRewards, we found that @solana is one of the leading blockchains by Total Staked Value ?
Check our graphic below for further information ?#SolanaNews #SOL #Staking #DeFi pic.twitter.com/bWVhPde0bl
— Solana News ☀️ (@SolanaNews) September 10, 2022
Moreover, SOL’s ecosystem also showed some more activity including a partnership with Encode Club, which was positive news as it helped SOL gain more popularity.
Though the SOL-related news was looking good for the ecosystem, several on-chain metrics suggested that the price surge was not a result of these.
For instance, development activity went down last week, which is a negative signal. Moreover, the Relative Strength Index (RSI) was also red indicating that SOL was in an overbought zone, which suggested a possible market top.
Source: CryptoQuant
Though SOL’s social dominance went up in the last few days, it fell again, which inundated less interest in the token.
Even though Solana registered an uptick in its price action, most of the metrics looked against it.
Hence, the growth in SOL’s price might take a U-turn going forward. Traders, therefore, should be careful before deciding to go long on the token.
