- Solana saw an unprecedented price rise in the past week
- Market indicators and metrics looked bullish
Solana’s [SOL] The new year started on a positive note with the token experiencing an unprecedented increase in its value over the past week. It beat all other cryptocurrency on the market capitalization side.
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According to CoinMarketCap, SOL’s price increased by 36% in the last seven days. At the time this article was written, SOL was trading at $13.23 and had a market cap exceeding $4.8 billion. Investors now have hope that the stock will recover after a disappointing December.
Will this surge continue?
As most tokens were hit hard by the FTX saga in 2022, it remained the main reason for the crypto winter. Solana appears to have been one of those who benefited. As per the latest data, Solana’s active wallets increased threefold after the incident, which was positive for the ecosystem.
Solana Network continues to lead active users🔥 https://t.co/ySUZBxz2GJ
— Solana (@solana) January 6, 2023
According to Santiment’s data, Solana’s development activity increased, indicating that developers were working more to improve the blockchain.
SOL’s Binance funding rate also registered an uptick. This indicated that the token was in high demand in the derivatives marketplace. The token’s social volume also went up, reflecting its popularity in the crypto community.
SOL’s popularity was yet again established as LunarCrush’s data revealed that it was among the top 10 cryptos with the highest social mentions between 1 – 7 January. However, The token’s volume, after spiking along with the price, declined from 4 January, which was a negative signal.
Source: Santiment
The cards will be able to absorb a 64.77x increase if SOL hits Bitcoin’s market cap?
Solana finally has a bright future
SOL’s market indicators also looked pretty bullish, suggesting that the surge will continue in the coming days. For example: Its Money Flow Index, (MFI), was above the neutral mark which was bullish. Also, the Chaikin Money Flow was (CMF), which increased the likelihood of a price rise.
The Moving Average Convergence Divergence, (MACD), showed a bullish crossover and revealed an advantage in market. The Bollinger Band further suggested that SOL’s price was in a high volatility zone, giving hope for better days ahead.
Source: TradingView