Tokens developed under the Solana (SOL) blockchain have been pumping, according to a recent revelation by tehMoonwalkeR, a crypto analyst on X. To arrive at this conclusion, tehMoonwalkeR checked out the prices of some of the tokens.
If you want to see a graveyard check out $SOL tokens on @CoinMarketCap
its funny because many of them are pumping now because $SOL tokens are hot again, but 90% of them stopped posting 1-2 years ago
shows that projects that launch on a chain “cause its trendy” are usually not… pic.twitter.com/ckYRg7xM8e
— tehMoonwalkeR (@tehMoonwalkeR) November 18, 2023
For instance, tokens like Sator (SAO) have increased by 26.20% in the last seven days. A closer look at the image above also showed that VisionGame (VISION) jumped by an incredible 123.36% within the same period.
Looking Out for Solana
The analyst, was, however, a bit critical of the tokens, noting that they only come to life once in a while. Irrespective of the reproval, tehMoonwalkeR mentioned that there could be a “hidden” unicorn out of the lot.
Whether there is a gem in there or not, a lot of it still depends on Solana’s movement. At press time, SOL’s price was $57.13— a 137.99% hike in the last 30 days. However, the last 24 hours have not been exactly rosy for SOL as the price consolidated.
When it comes to the 24-hour trading volume, CoinMarketCap data showed that it decreased to $2.66 billion. Should the volume continue to decrease, as well as the price, then SOL may drop to $55.
At the time of writing, the Bollinger Bands (BB), showed that SOL’s volatility was extreme. This implies that there could be significant price fluctuations going forward. However, the SOL upper band nor the lower band of the BB did not tap the SOL price at $56.19.
So, the token was not oversold or overbought. Consequently, SOL may continue to consolidate over the next few days. This consolidation may also affect tokens under the Solana ecosystem, as the uptick could stop for a while.
SOL/USD 4-Hour Chart (Source: TradingView)
A look at the Awesome Oscillator (AO) showed that bearish momentum was dominant. Therefore, there is a higher chance of a further decrease than an increase in the short term.
The TVL Falls
Another indicator to consider when assessing the potential of the SOL tokens is the Total Value Locked (TVL). The TVL shows the value of assets locked in a protocol. When the TVL increases, it means market participants perceive the protocol to be trustworthy.
On the other hand, a decrease in the TVL suggests a drop in liquidity. At press time, Solana’s TVL was $551.68 million. But in the last 24 hours, a lot of protocol under the chain has seen their liquidity decrease.
Solana Total Value Locked (Source: DeFiLlama)
For the token under Solana to hit new market cap levels, the TVL needs to recover. Also, SOL’s price needs to get back to its uptrend, But for now, that seems unlikely.
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