Why The Solana Price Is Driving the Crypto Market Rally?

In just 2 hours, the Solana price printed more than 22% of its 24-hour gains over the previous day, according to a tweet from blockchain company Santiment.

The price of Solana has increased by 40% in the past day, mirroring the general uptick in the cryptocurrency market. Trading volume in a day is up 195% to $2.76 billion.

In the previous day, the value of Bitcoin (BTC) and Ethereum (ETH) have increased by 10%. The sum, though, eventually climbed back above the key $1 trillion threshold.

🤯 While traders are celebrating the resurgence of #Bitcoin (back over $21k) and #Ethereum (back over $1,550), #Solana is the real star as the weekend is kicking off. Up +22% in the past 2 hours alone, $SOL has been fueled by liquidated shorts. https://t.co/ibrLUL8beD pic.twitter.com/58AfM44qPu

— Santiment (@santimentfeed) January 14, 2023

It took the Solana price less than 24 hours to climb more over 22 percent from the previous day, according to data from blockchain intelligence provider Santiment. According to the rest of the message, SOL gained ground because several short positions were covered.

Solana’s price has risen by 40%

With a current price of $23.66 per share, a market valuation of $12.6 billion, and a 24 hour trading volume that is 167% more than the previous day, Solana is performing exceptionally well. It is currently $2.5 Billion. CoinMarketCap estimates that there are currently 370,622,178 SOL in circulation.

Right now, the SOL course seems to be grossly underpriced because of the FTX problem. Most cryptocurrency experts agree that Solana is one of the most unpredictable digital assets out now. To give just one example, in 2021 the network’s valuation was periodically inflated. In light of Solana’s potential, the current asking price seems excessive.

Rate of financing on Binance

Today’s tweet from Santiment features a chart showing that shorting has become increasingly popular among Binance traders over the past several months. In the past two weeks, SOL’s price has risen from its low of $8 to where it is now. According to the tweet, investors who had shorted the market helped fuel the rebound.

Daily Solana Price Chart

Currently, SOL’s price is trading above the 9-day EMA line and the 20-day EMA line. Additionally, the asset’s price is being supported by the 9-day exponential moving average (EMA), which is bullishly situated above the lengthier 20-day EMA line.