Significant Volume Surges in Key Digital Asset Sector Predicted to Influence Future Crypto Prices, According to Santiment
Increased volume in a specific crypto sector is seen as a significant indicator of potential marketwide rallies, according to Santiment, a well-known analytics firm. Santiment is closely monitoring volume surges across various crypto segments to identify which could serve as a harbinger of future price surges.
The current upswing in the crypto market, as per Santiment, commenced on July 8th when traders began funneling funds into Bitcoin (BTC) and layer-1 projects. Notably, Santiment’s data showcases major volume spikes in different sectors over the past month. These spikes include heightened activity in Bitcoin and layer-1 assets, indicating potential future crypto upswings. Conversely, increased volume in AI (artificial intelligence) and Big Data coins is viewed as neutral, while spikes in memecoins are associated with market peaks.
Analyzing Santiment’s chart reveals that surges in volume for Bitcoin and layer-1 projects suggest traders are cautiously optimistic. On the other hand, a surge in memecoin volume signals a shift towards greed following a substantial market recovery.
Regarding Solana (SOL), Santiment predicts that the Ethereum (ETH) competitor will continue its upward trajectory as long as traders remain skeptical about its performance. The recent 33% surge in SOL prices since July 4th has been attributed to doubts among traders. Santiment believes that unless FOMO (fear of missing out) replaces FUD (fear, uncertainty, and doubt), the $200 mark for SOL is within reach in the near future.
In conclusion, Santiment’s analysis underscores the critical role of volume spikes in predicting future crypto market movements. By closely monitoring volume trends in specific crypto sectors, traders can gain valuable insights into potential price rallies and market sentiments.