One Ethereum (ETH) rival that is up more than 150% in 2023 is losing momentum, according to crypto analytics firm Santiment.
Santiment says that the recent Solana (SOL) rally was propelled by the liquidation of shorts and may now start to run out of steam.
According to the analytics firm, the best time to have bought into Solana was during the second week of June when funding rates had bearish spikes.
“As we can see from Solana’s funding rate on Binance and DyDx, the ideal time to buy in would have been when we saw these ultra short funding rate spikes happening in the second week of June. Prices can still keep climbing without the aid of shorts being liquidated, but the probabilities are certainly lowered.”
A funding rate of above zero indicates that market bullish sentiment is more dominant, while a rate in the negative levels indicates that bearish market sentiment is more dominant.
An increasing funding rate also indicates bullishness while a falling funding rate indicates bearishness.
At time of writing, the Solana funding rate on Binance is now positive at 0.010%. In early June, the funding rate on Binance dropped to a negative of 0.045%.
Santiment also highlights how Solana’s declining social dominance since the start of the year may indicate a lack of support for the current price level.
“We can also tell by the decline in social dominance that Solana’s social dominance has just continued to decline since the beginning of the year.”
Solana hit a low of $8 in December 2022 and is trading for $20.15 at time of writing, a 152% increase.
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