Although the market saw a green signal, unlike Solana, Bitcoin and many other altcoins did not register skyrocketing rallies. At one point, SOL was even 12.37% higher than the February 20 low.
However, at the time of writing, it was trading at just $94.22.
Interestingly, positive sentiment seems to be dominating the Solana blockchain right now.
Solana goes around the world
Solana is making an effort to connect with more crypto enthusiasts around the world. It has spread its wings in NYC, Bahamas, Hong Kong and Prague, among other important places.
After SOL entered Dubai on February 20, the price of SOL showed a strong increase on February 21. It is worth noting here that the recent gains have also been influenced by the bullish signals from the broader market.
As a result, the active downtrend, which had been dominating since January 8, lost its strength. In addition, bullish signals are now taking over the indicators.
For example, in the chart below, the signal line is in agreement with the MACD line. However, the Average Directional Index (ADX) is below the threshold, which is a positive sign.
Solana price promotion | Source: TradingView – AMBCrypto
Solana’s performance this month was quite exceptional. The bridge to Ethereum registered USDT inflows for the first time in nearly a month last week. It is the second biggest asset on the bridge after USDC.
In addition, total net flow so far peaked at $64.7 million on Feb. 19, despite the dwindling number of users.
Solana Ethereum bridge users and netflows | Source: Dune – AMBCrypto
However, taking the longer time frame into account, Solana’s disappointing performance forced investors to lose confidence in the asset.
Social sentiment has been strictly negative for more than three months. Towards the end of January and the beginning of February, some spikes in the positive region were observed. Unfortunately they didn’t last long.
Solana investor sentiment | Source: Santiment – AMBCrypto
Market cap fell 62% from $77 billion in November to $29 billion. As a result, Solana dropped from #4 to eighth position. This is also one of the reasons why some investors are losing faith in the altcoin.
At the moment, the asset certainly doesn’t look very attractive due to its negative risk-adjusted return of 2.58. But the low volatility will definitely prevent the altcoin from suddenly collapsing.
Solana risk-adjusted return | Source: Messari – AMBCrypto
Solana currently has no major network developments on the charts. Oddly enough, it only has its social factors to rely on for a rally to $100. Only time will tell if the Solana Hacker House World Tour can give SOL a boost.
This post Solana: Can social euphoria alone be the solution for SOL
was published first on https://ambcrypto.com/solana-can-social-euphoria-alone-do-the-trick-for-sol/
