Solana gained over 6% on Wednesday as it sustains pticks for the second consecutive day. Its candle shows that edged closer ot its all-time high but retraced afterward
The ongoing reflects the bulls resolve to push the coin higher following the massive losses it had Sunday and Monday. The latest tw-day uptren suggest that the bulls are exhausted from the selloffs that followed the ATH four days ago.
SOL opened the Jan. 19 at $261 but surged, breaking above $270 It continued upwards, heading for $300 but faced massive rejections at $295. Prices retraced a low as $237 after the milestone but recovered and closed $252. It sank lower during the next intraday session, hitting a low of $229.
Solana resumed its uptrend on Tuesday, surging from a low of $230 to peak at $260. Although it experienced resistance at the peak, it closed with gains exceeding 3%. The ongoing price uptick brings its increase in the last two over 10%.
Why is Solana Surging?
The latest increase comes amidst growing bearish trends across the crypto market. Several crypto asset like Bitcoin and Ethereum are om the decline. The apex coin dropped over 2%, hitting a low of $103,890. ETH sees a similar decline and it lost the $3,300 support, hitting $3,238.
Solana continues to benefit from it ecosystem exposure. Data from Solcan shows a massive trading volume of several assets within its ecosystem, resulting in massive revenues. Trading volume over the last three days, dwarfs its thirty-day performance.
The blocchain saw an average of $11 billion in volume for most of the last thirty days. The trend changed in Jan.18 as it spiked to $37 billion and $47 billion the next day. Trading volume as of the previous intraday session exceeded $29 billion.
The Official Trump Token and Melania made waves during this period, causing massive FOMO. However, the trend is gradually dying as $TRUMP struggles to break above $40 after its peaked above $70 a few days ago. The first lady’s token has since struggle to continue its surge.
The interaction between devs and investors grows n the Solana. Data from DefiLlama shows an increase in total value locked over the last 24 hours. It increased from 67.2 million SOLs to 69.2 million SOLs as transaction significantly surged.
The asset see notable increase in netflow as traders and developers move their assets for staking and other activity.
Will the Surge Continue?
Data from Santiment suggests the upticks continue. The chart below shows market sentiment against price movement.
A closer look at the chart above suggest that prices are bound to retrace when sentiment are very high but surge when its low. Market psychology was at its lowest on Tuesday, resulting in a price rebound. The bullish sentiment is gradually picking up hinting at further price increases.
However, indicators on the one-day chart are mostly bearish. The relative strength index reveals that the bulls may struggle to continue the uptrend as the metric trend 68, 2 clicks away from 70. A breakout from this level will make the asset overbought and due for more declines.
Solana currently trades slightly below the bollingers upper band. The surge above this critical level may spell further declines for the altcoin.
