• Analytics firm Santiment warns that the Solana (SOL) rally, which is up more than 150% year-to-date, is losing momentum.
• The best time to have bought into Solana was during the second week of June when funding rates had bearish spikes.
• Santiment also highlights how Solana’s declining social dominance may indicate a lack of support for the current price level.
Analytics Firm Issues Warning
An analytics firm has warned that Ethereum rival Solana (SOL), which is up more than 150% year-to-date, is losing momentum. Santiment says that the recent Solana rally was propelled by the liquidation of shorts and may now start to run out of steam.
Best Time To Buy In
According to Santiment, the best time to have bought into Solana was during the second week of June when funding rates had bearish spikes. A funding rate of above zero indicates that market bullish sentiment is more dominant, while a rate in the negative levels indicates that bearish market sentiment is more dominant. An increasing funding rate also indicates bullishness while a falling funding rate indicates bearishness. At time of writing, the Solana funding rate on Binance is now positive at 0.010%. In early June, the funding rate on Binance dropped to a negative of 0.045%.
Declining Social Dominance
Santiment also highlights how Solana’s declining social dominance since the start of the year may indicate a lack of support for the current price level. According to Santiment “We can also tell by the decline in social dominance that Solana’s social dominance has just continued to decline since the beginning of the year”
Solana Price Action
Solana hit a low of $8 in December 2022 and is trading for $20.15 at time of writing, a 152% increase from it’s all time low in December 2022.
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