Solana: Why impending danger could be a blessing in disguise for SOL
Journalist
Posted:
- SOL’s social dominance hit a yearly excessive, indicating a attainable 3x repeat.
- The sentiment across the token crossed into the constructive space amid a forthcoming sell-off.
As anticipated, FTX’s imminent liquidation has left Solana [SOL] in a sorry state. The token, which is the most important holding of the now-collapsed change dropped to $17.98, leading to a 6.98% lower within the final seven days.
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SOL’s social dominance goes over the roof
Because of the consideration round Solana, the undertaking’s social dominance touched its highest level in 2023. Just like market dominance, social dominance considers the share of voices conversing a few undertaking or token. To get the worth, LunarCrush divides the social quantity of an asset by the whole cryptocurrency market’s social quantity.
However that’s not all. Based on the information shared by pseudonymous Osmosis researcher Emperor Osmo, the rise in social dominance brings again recollections of the previous. In his publish on X (previously Twitter), Emperor Osmo famous that the final SOL’s social dominance reached such heights, the token worth virtually tripled.
$SOL social dominance hits yearly highs regardless of worth dip.
Final time this occurred, we skyrocketed from $9 to $25. pic.twitter.com/rYrpB2jmSW
— Emperor Osmo🧪 (@Flowslikeosmo) September 11, 2023
So, is it attainable to expertise a repeat? To deal with this, metrics just like the weighted sentiment can be helpful. By definition, the weighted sentiment measures the distinctive social quantity of property by wanting on the constructive/damaging commentary on social platforms.
On the time of writing, Solana’s weighted sentiment had jumped into the constructive area. Beforehand, the identical metric tanked to -0.546. Nonetheless, the restoration to 1.031 means that market gamers consider the worth drop would solely final for the brief time period.
Subsequently, it is extremely seemingly that contributors are profiting from the dip, and have the perspective that SOL is presently buying and selling at a reduction.
Weeping could final for the night time however…
In the meantime, it may also pique your curiosity that Solana’s on-chain quantity additionally elevated. Based on Santiment, the amount was 399.21 million. For context, on-chain quantity depicts the quantity of tokens transferred from exterior wallets into exchanges.
Supply: Santiment
Thus, which means that a possible promoting stress could happen other than FTX’s liquidation. This was additional confirmed by the open interest on exchanges. Used to find out market sentiment on exchanges, a hike within the metric suggests a rise in buying and selling exercise and attainable sell-offs.
However, a lower implies muted market exercise. At press time, SOL’s open curiosity on exchanges spiked to 1.06 billion, confirming the aforementioned short-term sentiment.
Supply: Santiment
Learn Solana’s [SOL] Value Prediction 2023-2024
Nonetheless, a piece sees the additional decline as an opportunity to build up for the mid to long run.
There was additionally one other part that believes the Worry, Uncertainty, and Doubt (FUD) round Solana won’t push the token to the lows skilled in the course of the November 2022 FTX contagion.
