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Solana has shown a breakout over the past few days, but the data shows that FOMO is on the rise, which could be a bad sign for a rally.
Solana’s social trading volume has increased significantly alongside the demonstration.
According to data from blockchain analytics firm saintSOL’s social volume has seen a sharp increase following the recent cryptocurrency recovery.
the “Social size“Here refers to an indicator that tracks the degree of discussion any given article receives on major social media platforms.
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This metric takes this measurement by counting the unique number of posts/topics/messages, mentioning cryptocurrency at least once.
The indicator doesn’t just count the mentions themselves, because sometimes a large number of mentions can appear within a few posts, and at the same time, the discussion can be fairly dead on the rest of social media.
High signals indicate that there is a lot of discussion in this case, but in reality, all the talk is confined within specific circles. By measuring the number of posts, social media volume can tell us about the trend across social media.
Now, here is a chart showing the trend in Solana Social volume over the past week or so:
As can be seen in the chart above, Solana Social’s trading volume has been growing rapidly recently. This means that the intensity of discussions regarding the origin has suddenly increased.
The driver behind this increase in the index is likely to be gathering The coin’s price has enjoyed a recent surge. In this new surge, SOL has recovered from a low of around $124 to the current $146 mark, meaning it has seen a return of nearly 18% in just a few days.
High social trading volume coupled with a rally is not unusual, as social media users find sharp price movement interesting, so they engage in more discussions than usual.
However, it may be worth noting how much of a rise the metric has seen this time around. Historically, the price of an asset has tended to move against majority expectations, so too much sudden excitement can be a bearish sign for the cryptocurrency.
In the same chart, Santiment attached social volume data for Avalanche (AVAX) stock, which also saw a rebound. It seems that unlike Solana’s rise, few people care about Avalanche stock’s rise, as the index’s value has remained relatively low.
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Therefore, AVAX’s rise is likely to be more sustainable than SOL’s, as it has been seeing much lower fear of missing outat least according to social size.
Sol price
Solana broke above $151 yesterday, but the asset has since seen a slight pullback to $146. It is currently unclear whether this means that the negative effects of FOMO are already starting to affect SOL.
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com
