Bitcoin
Volume spikes across major digital asset sector have dramatic impact on future cryptocurrency prices, says Santiment
Major analytics firm Santiment says surging volume in one cryptocurrency sector was a precursor to market-wide rallies last month.
Santiment says it is watching volume increases across different cryptocurrency areas to see which ones could be an indicator of future price rallies.
According to the firm, the current cryptocurrency rally began on July 8, when traders allocated capital to Bitcoin (BTC) and tier 1 projects.
“All the major volume spikes from last month, illustrated by different sectors.
Increased volume in Bitcoin and layer-1 assets leads to future rallies in cryptocurrencies.
The increase in volume in AI (artificial intelligence) and Big Data coins is neutral.
Increasing volume in memecoins leads to tops.”
Source: Santiment/X
Based on Santiment’s chart, volume spikes in Bitcoin and layer-1 projects are a sign that traders are showing cautious optimism. Meanwhile, the surge in memecoins is a sign of greed taking over after a major market rally.
Turning to Solana (SUN), Santiment sees Ethereum (ETH) rival continues its rise as investors doubt its performance.
“Solana faithful have been rewarded for their patience as prices have broken +33% since July 4th. The rally is being fueled by the crowd’s doubt towards SOL.
Until FOMO (fear of missing out) replaces FUD (fear, uncertainty and doubt), $200 SOL will be very close to being reached soon.”
Source: Santiment/X
Don’t miss a beat – Subscribe to receive email alerts directly to your inbox
To check Price action
Follow us on X, Facebook It is Telegram
Surf Hodl’s Daily Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be aware that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: DALLE3