Solana has enjoyed a sharp rally of about 23% in the last few days. Here’s what’s required for this run to continue further.
Solana Knocks On The Door Of $40 After Rapid Increase
While most of the cryptocurrency has been flat in the last few days, Solana has decoupled from the pack and has shown some impressive bullish momentum. So far in this run, SOL has managed to near the $40 milestone.
The below chart shows what the cryptocurrency’s latest rally has looked like:
SOL has seen some sharp rise during the last few days | Source: SOLUSD on TradingView
Following this rally, Solana is up about 23% in the past week, which is significantly more than what any of the top cryptocurrencies have achieved in the same period.
The past month as a whole has been a great time for SOL investors, as the asset is up more than 80% in the period. For comparison, Bitcoin only saw a 27% rally in this timeframe.
Thanks to this strong performance, SOL has also managed to improve its market cap ranking recently, as it now sits 7th on the list. This means that the asset is now the seventh-largest crypto in the sector on the basis of total valuation.
Looks like SOL has a market cap of $16.5 billion at the moment | Source: CoinMarketCap
Now, the big question on the minds of SOL holders must be: can this rally go even further? The on-chain analytics firm Santiment has provided some hints.
SOL Trading Volume Has Shot Up Recently, Social Dominance Is Also Up
In a new post on X, Santiment has discussed SOL’s latest rally and how its underlying metrics have changed following it. Notably, the trading volume of the cryptocurrency has seen a surge recently, as the below graph highlights.
The value of the metric seems to have gone up in recent days | Source: Santiment on X
The “trading volume” here refers to a measure of the total amount of SOL that has been involved in trading on the different spot exchanges in the sector during the past 24 hours.
From the chart, it’s visible that the Solana trading volume had shot up when the rally in October had started, but when the coin hit a phase of consolidation, the volume quickly dropped.
With the latest leg in the rally, though, the indicator has seen a resurgence, showing that traders have once again become interested in making moves on the token. Santiment notes that if this rise in the volume can continue, Solana might be able to keep up its current market cap push.
In the same chart, the analytics firm has also attached the data for another metric: social dominance. This metric basically tells us about how the social media talk related to SOL compares against the top 100 coins in the sector.
The social dominance of the cryptocurrency has remained at relatively high levels during the past month, implying that traders have been discussing about the rally.
This metric could be one to watch in the coming days, as it going even higher can be a sign of hype building around Solana, which is something that has historically not turned out well for rallies.
Featured image from Shutterstock.com, charts from TradingView.com, Santiment.net
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Author: Keshav Verma
