- SOL’s price surged by 5.86% this week, with social dominance peaking at over 3.8%
- ARB’s social volume remained low, dropping to 0.09% while the token traded below key moving averages
As a seasoned researcher with years of experience tracking the cryptocurrency market, I have to admit that this week has been a fascinating rollercoaster ride. Solana (SOL) and Arbitrum (ARB), two promising Layer 2 solutions, have taken divergent paths in terms of price action and social dominance.
This past week, Solana (SOL) experienced a notable increase in its price and boosted its standing in social influence. However, Arbitrum (ARB) and other layer 2 assets encountered significant drops when it comes to social activity and price fluctuations.
Needless to say, this has created a contrasting narrative between these blockchain ecosystems.
Solana and Arbitrum see divergent social volumes
Over the past few days, data from Santiment indicates that the social activity surrounding Solana and Arbitrum have taken different trajectories. Specifically, Solana experienced an increase in social activity, with a surge of more than 3% on two distinct instances this week.
On 13 October, the social volume surged to 3.8%. Another spike of 3.6% followed on 17 October.
This indicated that SOL dominated over 3% of all crypto-related discussions during the week.
It’s worth noting that at the current press update, Solana’s social activity has decreased slightly to approximately 2.7%.
Conversely, ARB’s social activity remained fairly minimal compared to other days. Although there were some peaks, the maximum it reached was 1.4%, which coincided with the time SOL experienced a significant surge of 3.8%.
At the time of writing, Arbitrum’s social dominance had dropped further to approximately 0.09%.
Comparing Solana and Arbitrum’s price trends
Over the last several weeks, Solana’s daily graph demonstrated an upward trend. To give you an example, this week saw SOL’s price soar to a high of $163.14, which represents a 5.86% increase from its latest trough.
Currently, at this moment, the price of the altcoin stands above both its 50-day Moving Average ($142.25) and 200-day Moving Average ($150.71). This elevation suggests a favorable short-term and long-term bullish trajectory for this cryptocurrency.
Furthermore, Sol’s price surpassing these crucial moving averages and an RSI indicating equilibrium implied potential for additional bullish movement ahead.
From my analysis, while Ethereum has been surging, Arbitrum has been more subdued. Over the past few weeks, it’s primarily held steady within a narrow band, not showing significant upward movement. It continues to stay below its 50-day Moving Average ($0.5497) and 200-day Moving Average ($0.8111), indicating a potential bearish trend in the near future.
At the current moment, the 200-day Moving Average stood noticeably higher compared to the current price, whereas the 50-day Moving Average merely hovered slightly above it.
SOL and ARB’s future outlook
As a crypto investor, I’ve noticed that Solana has been outperforming Arbitrum this week. The token’s surge above significant moving averages and its Relative Strength Index (RSI) approaching overbought levels suggests that the market momentum is with the buyers. This could potentially mean that Solana will continue its upward trajectory.
Instead of that, Arbitrum stayed in a phase of holding steady. While it’s showing hints of recuperation, it hasn’t yet demonstrated the strong bullish energy that Solana has exhibited so far.
ARB will need to break above its 50-day MA to attract more buyers and signal stronger movement.
In simpler terms, since ARB is not as popular or influential (has lower social dominance), it might provide higher profits if it starts to increase in value, or “pump”.
In the past, as prominent cryptocurrencies such as SOL experience significant price increases, investors tend to explore less recognized assets like ARB. Such a trend might lead to an upward momentum in ARB’s price chart.
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2024-10-20 03:04