Solana dazzles, accrues 40% gains in 24 hours

• Positive sentiment and Open Interest around SOL increased in the last few days. 
• Though network activity declined, market indicators remained bullish. 

The bullish market condition bore fruit for most cryptos, but Solana [SOL] stood out from the rest with its massive gains. In the last 24 hours, the token’s price soared substantially, allowing it to recover its market capitalization. 

Realistic or not, here’s SOL’s market cap in BTC’s terms   

However, it was surprising to note that despite the massive hike in price, the blockchain’s network activity declined. Will decreased usage of the network have a negative impact on its price action? 

Solana’s price skyrockets!

According to CoinMarketCap, Solana’s price was up by more than 40% over the last seven days. Though this was extremely bullish, the better news was that in the last 24 hours alone, SOL’s value increased by nearly 31%.

Not only that, while SOL’s price rose, its trading volume also increased by more than 300%, which acted as a foundation for the surge. At the time of writing, SOL was trading at $28.46 with a market cap of over $11 billion, making it the eighth-largest crypto.

Thanks to the price uptick, positive sentiment around the token also spiked, as evident from Santiment’s chart. Additionally, SOL’s Open Interest rose as well. A hike in this metric means that the on-going price trend might continue.

SOL’s demand in the derivatives market also improved, as its Binance funding rate chart turned green. 

Source: Santiment

Solana’s network stats are acting weird

However, Solana’s network activity did not reflect its price action. As per Artemis’ chart, SOL’s number of daily active addresses and daily transactions fell, suggesting less usage.

However, it was interesting to note that despite the drop in transactions, the blockchain’s fees and revenue gained upward momentum. The same trend was also noted in terms of its TVL. 

Source: Artemis

How much are 1,10,100 SOLs worth today?          

Will the bull rally continue?

Regardless, a few market indicators remained bullish on Solana. For instance, the Exponential Moving Average (EMA) Ribbon displayed a bullish crossover. The Bollinger Bands also revealed that SOL’s price was in a high volatility zone, further increasing the chances of a continued uptrend.

However, SOL’s Chaikin Money Flow (CMF) went down slightly. Additionally, SOL’s Relative Strength Index (RSI) was in the overbought zone. This can increase selling pressure and, in turn, result in a halt to the token’s bull rally. 

Source: TradingView