Solana’s native token, SOL (SOL), recently witnessed an impressive 58.6% surge over five days, peaking at $64 on November 11. However, in the subsequent two days, the token retraced by 11.3%, settling at $54. This shift has raised questions among investors, who are now grappling with the determination of whether this indicates a waning bullish momentum or is merely a temporary adjustment in price.
Comparing SOL’s recent performance to other leading altcoins provides valuable context. In the aftermath of its November 11 peak, Avalanche’s AVAX (AVAX) experienced a 17% rally, Ether (ETH) gained 1%, and BNB (BNB) traded down 2%. This comparative analysis underscores SOL’s underperformance within the broader altcoin market. Consequently, the 5.5% daily decline observed on November 13 appears to be unrelated to macroeconomic or sector-specific drivers, such as the potential approval of a spot BTC exchange-traded fund.
Analyzing further metrics, the 7-day funding rates at top exchanges reveal no clear indication of a systemic issue affecting SOL. Additionally, blockchain metrics, including Total Value Locked (TVL) and NFT sales volumes, present a nuanced perspective on SOL’s current standing within the cryptocurrency landscape.
As investors seek clarity on the factors influencing SOL’s recent downturn, the market remains vigilant for any potential developments that may shed light on the token’s future trajectory.
