Like the general crypto market, the price of Solana (SOL) witnessed significant growth over the past week. According to the latest on-chain data, this might only be the beginning for SOL’s price, with several indications of further upside potential for the altcoin.
What’s Behind Solana’s Recent Price Climb?
In a new report, blockchain intelligence firm Santiment offered insight into the recent price of Solana. According to the analytics platform, the price of SOL has swung upward by more than 33% since the 4th of July, rewarding investors who continued to bet big on it despite the sluggish market conditions.
Santiment mentioned that this positive run of form displayed by the altcoin over the past two weeks can be linked to investor sentiment. The blockchain firm noted that the price climb was triggered and sustained by crowd doubt.
Typically, the cryptocurrency market and asset prices tend to move in the opposite direction of the crowd. Hence, when there is euphoria and excitement amongst investors, assets tend to fall in value. Meanwhile, asset prices are likely to increase when there is crowd disbelief or FUD (fear, uncertainty, and doubt).
Despite the sustained increase in Solana’s value, there is yet to be a shift in investor sentiment — which is currently negative. This on-chain observation is based on Santiment’s weighted sentiment metric, which measures the overall positive and negative sentiment toward a cryptocurrency.
Furthermore, with the continued negative sentiment towards Solana, Santiment believes that the token’s price could experience a further rise this weekend. “Until FOMO replaces the FUD, $200 SOL is very much reachable soon,” the on-chain analytics platform revealed.
Solana Price To $200?
A return to $200 would be a highly exciting move for the Solana price, having faced rejection around the zone back in mid-March and early April. However, it is a feat that would take at least a 20% increase from the current price point.
The Solana faithful have been rewarded for their patience as prices have broken out +33% since the 4th of July. The climb is being fueled by crowd doubt toward SOL. Until FOMO replaces the FUD, $200 SOL is very much reachable soon. pic.twitter.com/hLpf8qZVqb
— Santiment (@santimentfeed) July 19, 2024
As of this writing, the price of Solana appears to be currently facing resistance around the $170 mark, although it is up by nearly 4% in the last 24 hours. According to CoinGecko data, the altcoin has increased in value by 20% over the past week.