Solana has experienced a significant increase of approximately 23% in recent days. To sustain this momentum, the following factors are required:
Solana Approaches $40 Mark After Rapid Surge
While most cryptocurrencies have remained stagnant in recent days, Solana has diverged from the pack and exhibited impressive bullish momentum. In its current surge, SOL has come close to reaching the $40 milestone.
The chart below illustrates the latest rally in the cryptocurrency:
SOL has observed a significant rise in the past few days | Source: SOLUSD on TradingView
After this rally, Solana has risen by approximately 23% in the past week, surpassing the performance of other top cryptocurrencies during the same period.
The overall month has been highly profitable for SOL investors, as the asset has increased by over 80% within this timeframe. In comparison, Bitcoin experienced a 27% rally during this period.
Due to its strong performance, SOL has recently improved its market cap ranking and now occupies the 7th position on the list. This makes it the seventh-largest cryptocurrency in terms of total valuation.
SOL currently has a market cap of $16.5 billion | Source: CoinMarketCap
Now, SOL holders might question whether this rally can continue. Santiment, an on-chain analytics firm, has offered some insights.
Surge in SOL Trading Volume and Social Dominance
In a recent post on X, Santiment discusses SOL’s latest rally and the changes in its underlying metrics. Notably, the cryptocurrency’s trading volume has experienced a surge, as depicted in the graph below.
The metric’s value has recently increased | Source: Santiment on X
In this context, “trading volume” refers to the total amount of SOL involved in trading on various spot exchanges within the sector over the past 24 hours.
From the chart, it is apparent that Solana’s trading volume spiked at the beginning of the October rally but declined rapidly during the consolidation phase. However, with the latest surge, the indicator has experienced a revival, suggesting renewed trader interest in the token. Santiment suggests that if this volume increase continues, Solana may be able to sustain its current market cap growth.
In the same chart, the analytics firm includes data on another metric: social dominance. This metric compares the discussion on social media regarding SOL to that of the top 100 coins in the sector.
During the past month, SOL’s social dominance has remained relatively high, indicating significant discussions among traders about the rally.
It is worth monitoring this metric in the coming days, as further increases could indicate escalating hype around Solana. Historically, this has not always been favorable for rallies.
Featured image from Shutterstock.com, charts from TradingView.com, Santiment.net