Prominent analytics firm Santiment says that increased volume in one crypto sector has been a precursor to marketwide rallies in the past month.
Santiment says it is looking at volume jumps in different areas of crypto to see which one can be a predictor of future price rallies.
According to the firm, the current crypto rally began on July 8th when traders allocated capital to Bitcoin (BTC) and layer-1 projects.
“All of the major volume spikes from the past month, illustrated by different sectors.
Increased volume in Bitcoin and layer-1 assets leads to future crypto rises.
Increased volume in AI (artificial intelligence) and Big Data coins are neutral.
Increased volume in memecoins leads to tops.”
Based on Santiment’s chart, volume spikes in Bitcoin and layer-1 projects are a sign of traders showing cautious optimism. Meanwhile, skyrocketing volume in memecoins is a signal of greed taking over after a major market recovery.
Turning to Solana (SOL), Santiment sees the Ethereum (ETH) rival continuing its surge as long as traders doubt its performance.
“The Solana faithful have been rewarded for their patience as prices have broken out +33% since the 4th of July. The climb is being fueled by crowd doubt toward SOL.
Until FOMO (fear of missing out) replaces the FUD (fear, uncertainty and doubt), $200 SOL is very much reachable soon.”
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The post Volume Spikes in One Major Digital Asset Sector Having Dramatic Impact on Future Crypto Prices, Says Santiment appeared first on The Daily Hodl.