Solana Price At 6-Month High, Dominance Jumps Above 3%

Solana crypto experienced record levels of network activity in Q4 last year and Q1 this year.

This performance gave Ethereum a run for its money but tables appeared to have turned in favor of Ethereum in Q2 and Q3.

Recent data suggests that Solana might be aiming for another explosive comeback not just in network activity but also in Solana price action.

Solana dominance has been rising for the last 6 consecutive weeks. Meanwhile, ETH dominance has been retreating for the last 3 weeks.

Consequently, SOL price action jumped above $220 in the last 4 hours courtesy of its latest demand surge.

An 8% gain from its lowest price point this week and a significantly higher rally compared to ETH.

The last time SOL traded at its recent levels was in early February this year. Meaning this latest price had SOL price almost clocking a 7-month high.

The observation that Solana is now outperforming Ethereum in terms of price action was noteworthy.

This was because it could signal that the next altcoin season leg is beginning and is characterized by liquidity rotation. This time SOL is on the winning side.

Whales Might be Betting on a Solana Price Retracement

SOL price was not yet overbought at the time of observation which may indicate more potential upside ahead. However, some on-chain data signaled that a retracement might be on the cards.

Solana large orderbook data on Coinglass revealed that whales have been taking some profits in the last 2 days.

Whales contributed about $6.93 million worth of net spot outflows from SOL in the last 48 hours.

This was across Coinbase and Binance, and OKX although still demonstrated more inflows than outflows.

Derivatives data revealed bearish expectations across the board with over $282 million in short positions.

This suggests that whales might be interested in triggering some liquidations especially with market sentiment signaling rising bullish expectations.

Interestingly, Solana futures open interest just soared to a new all-time high at $14. 5 billion in the last 24 hours.

This marked record levels of derivatives activity and could signal that SOL price might be sensitive to liquidations in the second half of this week.

Spot flows still leaned in favor of inflows hence indicating limited sell pressure. Meanwhile, liquidation data revealed that shorts were on the receiving side.

Roughly $19 million worth of shorts were liquidated in the last 24 hours at the time of observation. In comparison, only $4 million worth of longs were liquidated.

Solana TVL Clocks New ATH

Solana TVL adopted a steep vertical in the last 2 days. It pushed as high as $12.4 billion in the last 24 hours.

This marked a new ATH and a deeper look into the Solana ecosystem performance revealed that it was backed healthy activity.

Solana DEX volume jumped from as low as $2.39 billion on Sunday to $4.21 billion in the last 24 hours.

This was also accompanied by a surge in transaction activity. Active addresses jumped from 1.78 million to 2.69 million addresses during the same period.

Interestingly, address activity had previously been declined to a multi-month lows at the start of the week.

The last time address activity was that low was in October last year. Transaction activity retested levels last seen in April this year.

This latest recovery could signal that Solana was preparing to push into another period of elevated activity and potentially higher SOL prices