Solana has observed a sharp rally of 39% from the crash low. Here’s what the data says regarding whether this run can continue further or not.
Solana Has Breached The $153 Mark After Recovery Continuation In Past Day
A few days back, Solana crashed alongside the rest of the cryptocurrency market, dropping its price to a low of $110. Since this bottom, though, the asset has observed a sharp rebound, as it’s now back at the $153 mark.
The chart below shows the recent trend in the SOL price.
The price of the coin appears to have been going up over the past two days | Source:
The graph shows that Solana has already recovered beyond the level it had been at prior to the crash. However, despite the 39% rally, SOL is still quite far from the $194 level it was at towards the end of July before the drawdown first began.
As for whether it’s possible for the cryptocurrency to continue this recovery surge, perhaps market sentiment could provide some hints.
SOL Rally Began When Sentiment Was In The Fear Territory
According to data from the on-chain analytics firm , the crowd sentiment around Solana had dipped into the fear territory during the recent price crash.
Below is the chart shared by the analytics firm that shows how the ratio between the positive and negative sentiment around SOL has changed over the past few weeks.
The sentiment appears to have been improving alongside the rally | Source:
Historically, cryptocurrency has been more likely to move against the majority’s expectations, so a fearful sentiment can be a positive sign for its price. Thus, it’s not surprising to see that the asset found its rebound when the crowd was thrown into a panic.
As is visible in the chart, the market had seen a positive sentiment spike instead towards the aforementioned high of July, which may have been why the coin had reached a top back then.
With Solana observing its recovery and registering growth of another 10% in the last 24 hours, sentiment has improved, but the ratio is still not near the greed territory. Santiment notes that if the crowd disbelief continues, SOL can also potentially further its surge.
As usual, one major obstacle to the rally can be selling from the whales. Data from the cryptocurrency transaction tracker service reveals that a Solana whale has just made a big deposit to the Coinbase exchange.
The details of the large SOL transaction that has occurred during the past day | Source:
In this transaction, the whale moved SOL worth almost $31.7 million from their private wallet to Coinbase. Investors usually deposit to exchanges when they want to use one of the services they provide, which can include selling. As such, the whale may have made this transfer to cash in on the recovery run.
Featured image from Shutterstock.com, whale-alert.io, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
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Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
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