Solana’s governance coin SOL recorded lucrative uptrends recently, with its price soaring by more than 10% over the past seven days. The price upswing gave investors hope for lucrative days ahead.
Though the alternative token has recorded multiple optimistic developments within the community within the last few days, the sustainability of the ongoing hike remains questionable. Multiple metrics indicate that the surge emerged from nothing beyond a response to the ongoing bullish market. Let us assess the ecosystem.
What’s from SOL?
SOL has outshined multiple cryptocurrencies with top market caps lately by joining the list of leading assets by overall stacked value. Furthermore, Solana’s ecosystem displayed more activity, including partnering with Encode Club – positive news that assisted $SOL’s increased popularity.
Though the Solana-related news appeared lucrative for the network, multiple on-chain indexes show the price surge didn’t originate from these. For example, development activity plummeted last week, presenting a negative sign.
Also, the RSI (Relative Strength Index) stayed in the red, confirming overbought conditions for SOL, indicating a potential market top. Solana recorded an upswing in social dominance within the past few days. However, the metric slumped again, confirming faded interest in the altcoin.
Moreover, most metrics seemed again the upside price action by SOL. Thus, Solana’s price growth could pull a U-turn in the coming sessions. Investors should be alert before executing SOL longs.
Furthermore, analysts trust that 3rd quarter might be challenging for tier-1 digital coins. The crypto winter that started in 2021 Q4 has deteriorated the top three tokens (BTC, ETH, and SOL), losing a combined 70% of their market caps.
Tier-one tokens boast a lucrative future looking into 2023-2021 and beyond (according to the present information). Economists trust that crypto innovation might define the future of finance. Digital coins, much like credit & debit cards and checks, will likely shift how individuals transact and transfer to access services and goods in the future.
Nevertheless, the remaining 2022 does not appear promising for the crypto space. Thus, long-term investors should consider the mentioned timeframe. Interested players should be vigilant for possible short-term shorting opportunities.
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