Solana (SOL) has showcased an impressive performance over the past few weeks, gaining significant market value. Santiment’s report highlighted Solana’s success, noting its consistent top position in the market from December 18 to December 24, 2023, indicating sustained popularity throughout the week.
Despite facing stiff competition, SOL experienced a strong price surge and social volume, as reported by Santiment. The cryptocurrency’s recent gains of nearly 25% in just one week have enabled it to surpass XRP and BNB Chain (BNB), securing a spot in the top five cryptocurrencies list according to CoinMarketCap.
At the time of writing, SOL is trading at $104.37 with a market cap exceeding $44 billion. Technical analysis suggests that SOL’s Bollinger Bands indicate high volatility, and the MACD reveals a clear bullish advantage in the market. However, following a comfortable upward trend, SOL’s Relative Strength Index (RSI) has recorded a dip from the overbought territory.
A similar trend is observed with the Chaikin Money Flow (CMF), which could lead to a price correction in the coming days. SOL has already seen a 6% decrease in the last 24 hours. Analysis shows that Solana faced increased selling pressure when its price hit $127, shortly before dropping to the week’s lowest at $109. Additionally, a rise in Binance funding rates during the price drop suggests active selling by derivative traders.
Despite these setbacks, Solana’s social volume remained high last week, reflecting its market popularity. It will be interesting to follow whether Solana can maintain its position in the top five amidst these challenges.