The rise of Solana (SOL) is running out of steam: Santiment warns!

The SOL token has performed well since the beginning of the year. Like other cryptos, it was able to recover from the market crash in 2022. However, analytics firm Santiment reports that the rise of Solana (SOL) is slowing down. After registering an increase of more than 150%, why is the rival of Ethereum (ETH) showing signs of fatigue? Santiment explains why.

Santiment warns on the drop of Solana (SOL)

Since the start of 2023, Solana has seen a 152% increase. Its price has fallen from $8 in December 2022 to $20.15 at the time of writing. Analyst firm Santiment says this rally was propelled by the sell-off in shorts. But that could now start to run out of steam.

The best time to buy Solana (SOL) was during the second week of June, according to the analysis. The reason is that funding rates experienced downward peaks during this period.

Indeed, as shown by the Solana (SOL) funding rate on Binance and DyDx, the ideal time to buy would have been when the ultra-short funding rate spikes occurred. This corresponds to the second week of June. However, prices can still continue to rise without the help of short position liquidation. But in this case, the odds are lower.

SOL Price Prediction

According to the company, a funding rate above zero indicates that the bullish sentiment in the market is more dominant. Thus, a negative rate indicates that bearish market sentiment is more dominant. On the other hand, an increasing funding rate also suggests a bullish sentiment. While a decreasing funding rate suggests bearish sentiment.

As of this writing, Solana’s funding rate on Binance is now positive at 0.010%. At the beginning of June, the funding rate on the same platform had fallen to a negative level of 0.045%. On the other hand, Santiment also highlights the lack of support for the current price level indicated due to the declining social dominance of Solana (SOL).