Solana’s Price Surge: Insights from Santiment
Reports from the renowned analytics firm Santiment suggest that the recent surge in SOL’s price can be attributed to the market’s recognition of the token’s independence from strong correlations with Bitcoin (BTC) or Ethereum (ETH). Consequently, discussions surrounding Solana, as reflected in social dominance, continue to reach unprecedented levels. Simultaneously, an increase in the funding rate signals a growing bullish sentiment among investors.
Santiment’s Report on Solana
The combination of heightened social dominance and funding rates often indicates that a cryptocurrency may have reached a local peak, potentially leading to a slowdown in buying orders. However, Solana appears to defy this pattern. Chain data from Santiment supports the notion that SOL is currently in a bullish opportunity zone.
Additionally, experts have scrutinized the trading volume to assess whether it’s an opportune time to buy SOL. According to Token Terminal data, Solana’s trading volume stood at approximately $1.48 billion at the time of writing, representing an 18.29% increase in the last 24 hours. A surge in volume, coupled with rising prices, can signify growing momentum.
Targeting $60 for SOL
Experts foresee the possibility of Solana surpassing $55 and heading towards $60 in the coming days. This scenario could materialize if the trading volume remains robust and there is sufficient buying pressure to sustain the upward trajectory. Analysis of SOL’s price on the 4-hour time frame suggests that the subunit is in price discovery mode. Price discovery, largely influenced by demand and supply, reveals how a cryptocurrency’s value is shaped by the interplay between buyers and sellers.
Furthermore, the 0.382 Fibonacci retracement level was observed at $43.44, indicating a subsiding fear in the market and the initiation of an uptrend. A robust support level formed at $44.81, supported by the 0.236 Fib level. In the event of a SOL pullback, there is a high probability of finding a favorable buying position at or above this price. Additionally, the relative strength index (RSI) suggests that SOL has entered the overbought territory.