Solana’s volatility increased by 259% over a month, but here’s the catch
- Public perception of Solana continues to be negative
- Despite the negative reception, the platform’s NFTs show improvements
Solana [SOL] has been on the receiving end of criticism over the last year, owing to its network outages and exposure to Alameda Research. The growing negative perception of Solana could thus drastically affect the development of its native token, SOL.
Read Solana’s Price Prediction 2022-2023
Solana in the public eye
As can be seen from the image below, the weighted sentiment for Solana remained negative since 9 November. Thus, during this period, the crypto community had more negative than positive things to say about Solana.
Along with that, Solana’s social mentions and engagements decreased as well. According to data provided by LunarCrush, the platform’s social mentions depreciated by 9.3% and the number of social mentions fell by 28.34% over the last seven days.
This declining sentiment coincided with Solana’s declining prices, which depreciated by 48.22% since 9 November. SOL’s prices had been oscillating between the support and resistance levels of $15.23 and $10.83.
Moreover, its RSI indicator was at 40.41 at the time of writing, suggesting that the sellers had more advantage in the market. Though the CMF indicator was above the zero line after 23 November, it eventually declined over the past few days.
This indicated that Solana’s market strength had been weakening.
NFTs provide a silver lining?
However, despite the negative sentiment around Solana, it still showed improvements in the NFT space. The platform reported a 19.3% quarter-on-quarter NFT growth, according to data by Messari.
The overall floor price for Solana’s NFTs grew as well over the last few months. And, the NFT volume increased, according to the image provided below. At the time of press, the gross volume for Solana was 227k.
It is here to be noted that Solana’s volatility increased massively over the last month. According to data provided by Messari, SOL’s volatility increased by 259%.
This development implied that buying SOL would be risky during this market as the token is susceptible to extreme price fluctuations.
However, despite the FUD and declining prices, Solana’s market cap dominance continued to grow. In the last seven days, Solana’s market cap dominance increased by 12.77%. At the time of writing, Solana captured 0.55% of the overall crypto market.