Solana Ascends to the Top 5 Cryptos Amidst Massive Gains
The token breaks into Top 5 cryptocurrencies with outstanding performance in triple digits.
Solana (SOL) has recently showcased an impressive performance with its substantial gains. The token has outpaced the leading coins, earning it a place among the top 5 cryptocurrencies by market capitalization.
Bitfinex, one of the world’s leading crypto exchanges, recently tweeted about Solana’s growth. According to the tweet, SOL’s price has soared by over 340% in just the last three months. At the onset of its bull rally, the token was valued at $19.80, and three months later, its price escalated to $67.94.
AMBCrypto conducted an analysis of how the token’s on-chain metrics responded over the past few months as its price experienced a triple-digit surge and scrutinized Solana’s on-chain metrics to observe their reaction to SOL’s price surge.
An examination of Santiment’s data revealed that SOL’s 1-day Price Volatility experienced multiple spikes, attributable to the successive price increases. Interestingly, SOL’s Development Activity remained fairly steady throughout the past three months.
The story doesn’t end there, as SOL’s trading volume saw a sharp rise on several occasions. As reported earlier by AMBCrypto, SOL’s volume exceeded $1.5 billion as of December 16, surpassing Ethereum [ETH], the reigning altcoin.
The price increases also turned SOL into a popular discussion topic in the crypto community, as indicated by the increase in its Social Volume. Its Weighted Sentiment followed a similar trajectory, suggesting a prevailing bullish sentiment around Solana in the market. During this period, SOL did encounter significant liquidation, but none of it was sufficient to halt the token’s surge.
AMBCrypto’s analysis of SOL’s liquidation heatmap also revealed that the token faced high liquidation at various levels, including $38, $53, $60, and $62.
In an attempt to predict whether Solana [SOL] would conclude this year with a similar bullish trend, AMBCrypto analyzed its daily chart. The analysis revealed that both the Money Flow Index (MFI) and Chaikin Money Flow (CMF) showed increases, suggesting a potential continuation of the uptrend. However, the Moving Average Convergence Divergence (MACD) raised concerns as it indicated the possibility of a bearish crossover.
Further concerns emerged after AMBCrypto reviewed data from Coinglass. At the time of the report, SOL’s Funding Rate was declining, indicating that derivatives investors were not purchasing SOL at its elevated price.
Solana’s Open Interest also showed a decrease, typically a signal of an impending trend reversal. At the time of writing, SOL had risen by 8% in the last 24 hours and was trading at $75.8, with a market capitalization exceeding $32 billion.