Solana Extends Rally By 4%, But This Factor Could Lead To A Top
15 October 2024 - 7:00AM
NEWSBTC
Solana (SOL) has continued its recent bullish wave during the last
24 hours with a surge of 4%, but the trend in this social
media-related metric could be to watch out for. Traders May Have
Become Too Hyped Around Solana On Social Media Recently According
to data from the analytics firm Santiment, the positive sentiment
around SOL on social media has shot up to a nine-month high
following the latest bullish momentum that the coin has seen.
Related Reading: Bitcoin Whales Are Going Through A ‘Generational’
Shift, CryptoQuant CEO Reveals The indicator of relevance here is
the “Positive Vs. Negative Sentiment,” which, as its name suggests,
keeps track of the ratio between the amount of positive and
negative comments related to Solana that are appearing on social
media. This metric works by analyzing the posts/threads/messages on
various social media platforms (X, Reddit, Telegram, 4Chan, and
BitcoinTalk) and running them through a machine-learning model to
determine which ones relate to positive sentiment and which ones
relate to negative sentiment. When the indicator has a value
greater than 1, it means the number of positive posts are
outweighing the negative ones right now. On the other hand, it
being under the mark implies the dominance of bearish comments.
Now, here is a chart that shows the trend in the Positive Vs.
Negative Sentiment for Solana over the last few months: As
displayed in the above graph, the Solana Positive Vs. Negative
Sentiment has registered a large spike as the latest recovery in
the asset’s price has taken place. With this spike, the indicator
has reached a value of more than 5.6, which means social media
users are making over 5.6 times as many bullish posts as bearish
ones. This is the highest that the metric has been in around nine
months, so the traders are clearly quite optimistic about the
current SOL rally. While some bullish moods can be conducive to
rallies, an excess of them can actually prove to be an obstacle.
Historically, cryptocurrencies like Solana have tended to show
moves that are opposite to what the crowd is expecting. The
probability of a contrary move rises the more sure the traders
become of a direction, so a highly bullish market can lead to tops
in the price. Related Reading: Spot Bitcoin ETFs Back To Positive
Returns With $308 Million Inflows – Details This effect is also
visible in the chart, as some past spikes in the Positive Vs.
Negative Sentiment had occurred around local tops in Solana’s
value. So far, SOL has only continued to rally further despite the
investor FOMO, but considering the historical pattern, it’s
possible a top may be hit before long, should hype on social media
maintain at high levels. SOL Price Solana has continued its latest
run with a 4% surge over the past day, which has taken its price
above the $153 level. Featured image from Shutterstock.com,
Santiment.net, chart from TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Oct 2024 to Nov 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Nov 2023 to Nov 2024