97 Interactions, 2 Today
No other altcoin has done what Solana has in the last 50 days. It is now the world’s sixth largest cryptocurrency after entering the top 10 coins chart and then falling behind XRP and DOGE. But that’s not all; after dabbling in NFTs, the coin has done something far more surprising.
Solana breaks records
The altcoin has been creating all-time highs with every passing day for the last 50 days. The most recent was on September 8 at $191, however, since then the coin has come down.
Up from $23, the coin reached $178 and it has now finally taken a break from the continuous rally. In the last 4 days, the coin has come down by 6.3%.
Despite the dip, it climbed by 6%, thus there is no specific reason why it fell, other than the chance of a correction. Because the coin rallied so strongly for such a long time, corrections are beneficial. Nonetheless, the market has been quite beneficial to SOL.
The altcoin’s liquidations peaked on September 7, and have since been at a low. Furthermore, futures Open Interest has been very stable, so there isn’t much to be concerned about here.
In fact, spot volumes were back down to an average of $3 billion after peaking at $12 billion 2 days ago, indicating reducing bullishness. But as the coin was slowing down, yesterday’s news fanned the sparks of bullishness once again.
What kind of bullishness?
Solana yesterday sold its first-ever million-dollar NFT, the 13th rarest DegenApe for 5,980 SOL ($1.1 million).
SOL reached this milestone in less than two months, whereas Ethereum took three years. However, because Ethereum sold a cryptopunk for $11.8 million in June, this is not a competition.
However, because investors will dive in headfirst as a result of this news, now is a fantastic moment to purchase SOL. The Sharpe ratio has reached an all-time high, indicating that returns are strong.
Furthermore, little volatility will promote a price increase if it occurs soon. However, because the RSI has been swimming in the overbought zone for over a month now (refer to the TradingView chart above), there is a good likelihood that prices will decline.
From an investment perspective, holding Solana would be the right call since NFT hype will take the price back up after some necessary corrections.