Crypto News

Solana Leads Crypto Market Gains, How Long Will This Continue?

Solana (SOL) was ahead of the rest of the crypto market when it came to profits. The market had seen renewed interest after the holidays, prompting a small bounce here and there, particularly among the big players, but Solana was able to break completely from the trend, posting double-digit gains over the past few days.

What is driving Solana’s growth?

Although Solana is at the forefront of the massive FUD that has pushed its price to a two-year low, it has clawed back a significant amount of gains over the past few days. While the comments off Ethereum Founder Vitalik Buterin to support the Blockchain helped, there was another factor driving up the price.

A new meme coin known as BONK had graced the Solana ecosystem, and after it went to holders of large NFTprojects had been dropped from the air, the price of the meme coin had gone up. The resulting gains would cause investors to FOMO into the cryptocurrency and since they had to trade on the Solana network, SOL’s price had skyrocketed with all the new attention it was getting.

Solana Leads Crypto Market Gains, How Long Will This Continue?, Crypto Trading News

In two days, SOL rose through the ranks and became one of the best performers in the space coming into the new year. It’s up over 16% in the last 24 hours alone, and the price of the digital asset has moved from negative territory to green territory over the past week. According to data from Coinmarketcap, it is now at almost 37% gains for investors over the period.

Can SOL hold the profits?

Currently, the growth of SOL in the market is still largely driven by the FOMO triggered by the BONK meme coin. Since the hype surrounding the coin has grown significantly, investor interest is expected to remain high, thus continuing Solana’s growth trend.

However, it is important to keep in mind that the BONK cryptocurrency is largely driven by hype, and just like any other meme coin, this hype is expected to die down at some point. Once that happens, the fall in interest rates would also have a significant impact on SOL’s price, dragging it down with it. Unless something else would drive up the price of SOL.

It is also expected that some profit-taking would begin, where investors would start dumping SOL to claim the gains already visible. This too will contribute to settlement and a downward correction would ensue. However, it is not expected that this correction Claimed more than 10% of recent gains as SOL’s price is now trading above its 20-day moving average of $12.3.

SOL is changing hands at $13.72 as of this writing. It has Shiba Inu outdated and is with a market capitalization became the 15th largest cryptocurrency by $5.04 billion.

Follow Best Owie on Twitter for market insights, updates and the occasional fun tweet… Featured image from Analytics Insight, chart from TradingView.com

Source: Crypto News Deutsch

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