Solana pumps 8% in 24 hours: Will price prediction remain bullish?

Journalist

Posted: December 20, 2023

• Solana witnessed high liquidations on several occasions during its bull rally.
• SOL was up by more than 8% in the last 24 hours, but a few metrics looked bearish. 

Solana [SOL] has displayed incredible performance of late with its massive gains. The token outperformed the top coins at this time, allowing it to grab a spot on the list of the top 5 cryptos by market capitalization.

AMBCrypto also took a look at how the token’s on-chain metrics reacted over the last few months while its price surged in triple digits.

Solana’s growth is remarkable

Bitfinex, one of the world’s largest crypto exchanges, recently posted a tweet regarding Solana’s growth. As per the tweet, SOL’s price has surged by more than 340% in the last three months alone.

During the beginning of its bull rally, the token was priced at $19.80, and three months later, its value reached $67.94.

Good morning, @Solana fam! ☀️ Today’s a great day to celebrate the 343% growth of $SOL. From $19.80 per SOL 3 months ago to $67.94 today! Stay bullish.https://t.co/Ltajh1l15C

— Bitfinex (@bitfinex) December 18, 2023

AMBCrypto also examined Solana’s on-chain metrics to see how they reacted when SOL’s price skyrocketed. Our analysis of Santiment’s data revealed that SOL’s Price Volatility 1d spiked multiple times, thanks to the consecutive price upticks.

Interestingly, SOL’s Development Activity also remained relatively stable throughout the last three months.

Source: Santiment

There was more to the story, as SOL’s trading volume increased sharply on multiple occasions. As AMBCrypto reported earlier, SOL’s volume was over $1.5 billion as of the 16th of December, surpassing the king of altcoins, Ethereum [ETH].

The price upticks also made SOL a hot topic of discussion in the crypto space, as evident by the rise in its Social Volume. Its Weighted Sentiment also followed a similar trend, meaning that bullish sentiment around Solana was dominant in the market.

Source: Santiment

During that period, SOL did face quite some liquidation, but nothing was enough to stop the token from pumping.

AMBCrypto’s analysis of SOL’s liquidation heatmap revealed that the token faced high liquidation at several levels, including $38, $53, $60, and $62.

Source: Hyblock Capital

The odds of Solana continuing this trend

To see whether SOL would end this year on a similar bullish note, AMBCrypto took a look at its daily chart.

We found that both its Money Flow Index (MFI) and Chaikin Money Flow (CMF) registered upticks, increasing the chances of a continued uptrend. However, the MACD was concerning as it displayed the chances of a bearish crossover.

Source: TradingView

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More concerns were revealed after AMBCrypto checked Coinglass’ data. SOL’s Funding Rate was dropping at press time, meaning that derivatives investors were not buying SOL at its higher price.

Solana’s Open Interest also waned, generally a sign of an upcoming trend reversal. At the time of writing, SOL was up by 8% in the last 24 hours and was trading at $75.8 with a market cap of over $32 billion.

Source: Coinglass