Solana: A rally or a correction incoming?

Journalist

Posted: December 22, 2023

• Solana saw a massive surge in its price over the last 24 hours.
• Whales got skeptical around this rally, however, sentiment remained high.

Solana [SOL] has been of the altcoins that has benefitted the most from the bullish sentiment around the crypto space.

In the last 24 hours, SOL surged over 16%, reaching a market value of $41.8 billion, surpassing BNB at $41.1 billion.

It now ranks as the fourth-largest cryptocurrency. Additionally, SOL’s contract trading volume surged by 32% to exceed 10 billion, with open interest reaching 1.34 billion, trailing only BTC and ETH.

Whale interest wanes

However, this growth of Solana could be stunted by whale behavior. BitMEX founder Arthur Hayes announced in a recent tweet that he has divested from SOL, opting to acquire more ETH.

Additionally, he forecasted a target price of $5,000 for Ethereum.

A decline in whale interest could potentially impede the growth trajectory of SOL.

Whales often play a significant role in influencing market trends, and their reduced participation may lead to lower liquidity and increased volatility in the SOL market.

This could impact investor confidence and overall sentiment, affecting the coin’s ability to sustain upward momentum.

It’s crucial to monitor whale activity as it can serve as an indicator of broader market dynamics and potential shifts in SOL’s price trajectory.

Fam … I have a confession to make.

I received a msg from the Lord while meditating. He said dump that Sam coin POS, and profess your love for Archangel Vitalik.

So I dumped $SOL, and bot more $ETH.$ETH = $5,000

— Arthur Hayes (@CryptoHayes) December 22, 2023

More green for SOL

At press time, SOL was trading at $98.52. In the last 24 hours, its price grew by a massive 17.41%. The volume at which SOL was trading at also grew materially.

Due to this, the hype around the SOL token also grew. Coupled with that, the weighted sentiment for SOL also increased. This meant that more users on social networks had a positive outlook on SOL.

Source: Santiment

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

Even in terms of the overall protocol, Solana was doing really well. According to recent data, the DEX volumes on Solana have grown 100 times since the last quarter.

These factors could paint a positive picture for Solana holders in the future.

Solana DEX volume is a stark reminder fast things can change in DeFi.

In the past 24 hours, Solana DEXes processed $1.591B of volume.

On September 21st, those DEXes processed $23.26M of volume and on September 22nd they processed $13.24M.

That’s a 100X in 1 quarter. pic.twitter.com/afry2wyPPD

— Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) December 21, 2023