As a seasoned crypto investor with a knack for spotting undervalued gems and a keen eye for market trends, I’ve been closely watching Solana (SOL) over the past few weeks. The recent 17.13% dip is indeed concerning, but as Glassnode analysts suggest, it’s just a temporary hiccup in this bull cycle.
Over the last week, marked by turmoil in the cryptocurrency market, Solana (SOL) has experienced a substantial drop of approximately 17.13%. This information is derived from data provided by CoinMarketCap.
The drop continues in the token’s price trajectory since it peaked at an unprecedented $263.83 just after the US Presidential elections in November. Yet, given that we are still early in the crypto market’s bullish phase, experts at Glassnode remain optimistic about the token recovering its bullish momentum, even though it hasn’t set any new record highs over the past three weeks.
More Room For SOL Price Growth, Analysts Say
In a recent blog post on December 20, Glassnode in collaboration with crypto analysts UkuriaOC and CryptoVizArt shared vital insights on the current state of the Solana market.
Through examining the Net Realized Profit/Loss indicator, these financial analysts found that Solana has seen a continuous flow of capital into its market starting from early September 2023. The maximum daily influx of fresh capital was approximately $776 million during this period.
For this timeframe, the SOL market experienced modest increases in investment, primarily due to profit-taking from coins that have been held for one day to one week, one week to one month, and six months to one year. This trend suggests a strong appeal of Solana to both investors with short-term and long-term perspectives.
To understand Solana’s current position in light of recent market movements, Glassnode uses the MVRV ratio as a gauge. This ratio helps identify whether the market might be excessively hot (when it’s above 1), indicating potential overvaluation, or relatively cold (below 1), suggesting undervaluation.
The MVRM (Moving Average Ratio of Variance) can help determine price zones that categorize investors’ profitability levels into different groups. By employing this system, Glassnode notes that Solana is presently showing a trend of moving horizontally within the average MVRM and plus half a standard deviation band.
As a seasoned cryptocurrency investor with over a decade of experience in this dynamic market, I can confidently say that the Solana market is currently showing signs of intense activity, but it is far from reaching the peak of a bull cycle. My analysis is based on the historical trend where MVRV breakouts of more than one standard deviation have consistently signaled the formation of a longer-term macro topping structure for altcoins. This pattern has been instrumental in my decision-making process, helping me navigate market highs and lows effectively. Therefore, while the current heat in the Solana market is undeniable, I advise caution and patience, as we are not yet at the peak of the bull cycle.
As an analyst, I find it plausible that Solana continues to demonstrate substantial growth potential prior to reaching an overly heated state, which is typically a precursor to a market decline.
Solana A Stellar Investment So Far – Glassnode
Besides providing additional understanding about the Solana market, Glassnode also highlights that this altcoin has shown great potential for profit in the cryptocurrency sector.
Since its plunge to $9.64 in November 2022, Solana has seen an astounding surge of more than 2143% over the past two years. Over this timeframe, this digital currency has consistently outshone Bitcoin and Ethereum on 344 out of 727 trading days following the FTX exchange’s downfall, suggesting robust market demand and interest.
Currently, Solana is being traded at $194.58, representing a decrease of 0.50% over the past 24 hours. Yet, it’s encouraging to note that the trading volume for this asset has increased by 18.94%, reaching a value of approximately $9.94 billion.
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2024-12-21 22:34