Solana eclipses XRP & DOGE in this metric, but it’s not all good news

• SOL liquidity elevated however its value has not been steady.
• Merchants’ bullish sentiment couldn’t cease a $3.90 million liquidation.

Solana [SOL] has change into one of many altcoins with actually excessive liquidity on Coinbase, based on market analysis platform Kaiko. Having excessive liquidity typically permits value stability and fewer volatility. 

Life like or not, right here’s SOL’s market cap in XRP phrases

SOL’s well being isn’t wealth

And as a measure of the demand for and provide of an asset, SOL’s excessive liquidity is a sign of a wholesome market on its facet. In keeping with Kaiko, the hike in liquidity ensured that SOL outpaced Ripple [XRP], Dogecoin [DOGE], and Polygon [MATIC] as per the metric.

📈 $SOL has surged to change into on of probably the most liquid altcoins on Coinbase pic.twitter.com/0vGJ1hEiY8

— Kaiko (@KaikoData) August 16, 2023

Main altcoins when it comes to liquidity might not be shocking contemplating how SOL outperformed most property available in the market currently. Nevertheless, beneath this exceptional feat, SOL has confronted its justifiable share of challenges, as its value has skilled a latest downturn.

Based mostly on CoinMarketCap’s information, SOL misplaced 4.22% of its worth within the final seven days. From the four-hour SOL/USD chart, the altcoin shaped a bearish market construction. 

As of 15 August, SOL tried to carry assist at $23.96. However sadly, there was little to no shopping for strain to curtail the growing sell-off. Thus, this led the assist all the way down to $22.90.

Whereas SOL has risen mildly above the $22 area, volatility has change into actually excessive, as indicated by the Bollinger Bands (BB). The decrease band of the BB additionally touched SOL’s value beforehand, indicating that the altcoin was oversold.

Though there was a slight reversal within the development, the Shifting Common Convergence Divergence (MACD) confirmed that the momentum remained largely in bearish management. Destructive MACD values point out that the 12-day EMA is under the 26-day EMA.

Supply: TradingView

And at press time, the MACD was -0.13. Until demand for SOL outweighs the promoting strain, the altcoin value might lower as little as $20.

Optimism provides opposing outcome 

Regardless of SOL’s downtrend, the funding charge was optimistic, primarily based on Santiment’s information. Usually, a adverse funding charge signifies that brief positions outpaced lengthy positions. Nevertheless, the optimistic SOL funding charge implies that the typical dealer’s sentiment towards SOL was bullish.

Just like the funding charge, the weighted sentiment was additionally within the optimistic area. The weighted sentiment considers the distinctive social quantity with respect to opinions round an asset. 

When the metric is optimistic, it implies that the typical notion of an asset is optimistic. Conversely, a adverse weighted sentiment suggests the other. And SOL supported the previous.

Supply: Santiment

Is your portfolio inexperienced? Examine the Solana Revenue Calculator

In the meantime, info from derivatives monitoring portal Coinglass confirmed that about $3.90 million SOL positions have been worn out within the final 24 hours.

Additionally, longs accounted for $2.94 million out of these liquidated. Shorts positions liquidated, alternatively, have been price $952,670.