The first week of Solana’s [SOL] new year was a good one because the token had an increase that had never been seen before. In terms of market capitalization, it was worth more than any other cryptocurrency.
CoinMarketCap says that the price of SOL has actually risen by 36% over the last week. At the time this was written, it was selling for $13.23 per share and had a market capitalization of almost $4.8 billion. After a bad December, this latest event gave investors hope that things will get better.
Will the increase last?
The FTX story of 2022 was still the main reason for the last crypto winter, since most tokens took a big hit. Still, Solana seems to have gained in at least one way. According to the most recent data, after the incident, the number of active wallets for Solana tripled, which was good for the ecosystem.
Santiment’s data shows that Solana’s development activity rose, which means that developers worked harder to improve the blockchain.
The funding rate for SOL on Binance also soared. This showed that there was a demand for derivatives on the market. The rising social volume of the token shows how popular it is becoming in the cryptocurrency world.
LunarCrush’s research shows that between January 1 and January 7, SOL was one of the top 10 cryptocurrencies that were talked about the most on social media. Since the price went up on January 4, the token’s volume went down, which was a sign of bad news.
Solana’s situation is getting better right now
There were also a lot of strong signs for SOL’s market, which suggests that the boom will continue in the coming days. For example, its Money Flow Index (MFI) was above the neutral line, which showed that people were feeling good about it. Also, the Chaikin Money Flow (CMF) was fairly strong, which made it more likely that prices would go up.
Also, the Moving Average Convergence Divergence (MACD) showed a bullish transition, which was a sign of an edge in the market. Also, the Bollinger Band showed that SOL’s price was in a high-volatility area, which meant that better times were on the way.