8 August 2024
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 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 Santiment, 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.
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 Whale Alert reveals that a Solana whale has just made a big deposit to the Coinbase exchange.
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.