Solana extends the rally by 4%, but this factor could lead to a top

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Solana (SOL) continued its recent rally with a 4% gain over the last 24 hours, but it’s worth noting the trend in this social media metric.

Traders may have become overly excited about Solana on social media lately

According to data from an analytical company SaintlyPositive sentiment around SOL on social media has reached a nine-month high following the coin’s recent uptrend.

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The relevance indicator here is “Positive vs. Negative Sentiment”, which, as the name suggests, tracks the ratio of the number of positive and negative comments about Solana that appear on social media. This indicator works by analyzing posts/threads/messages on various social media platforms (X, Reddit, Telegram, 4Chan and BitcoinTalk) and running them through a machine learning model to determine which ones relate to positive sentiment and which ones relate to negative sentiment moods.

When the indicator has a value greater than 1, it means that the number of positive posts outweighs the negative ones at a given moment. On the other hand, being under the sign means that bearish comments dominate.

Here is a chart showing the trend of positive and positive values. Negative sentiment towards Solana over the last few months:

As shown in the chart above, Solana Pozytcyjna vs. Negative sentiment has seen a huge escalate due to the recent rebound in asset prices. After this jump, the indicator reached a value of over 5.6, which means that social media users post more than 5.6 times more bullish posts than bearish ones.

This is the highest result in about nine months, so investors are clearly sanguine about SOL’s current growth. While some bullish sentiment can support growth, too much of it can actually prove to be a hindrance.

Historically, cryptocurrencies like Solana have tended to move inversely to crowd expectations. The likelihood of a reverse move increases the more confident investors are in a direction, so a highly bullish market can lead to price tops.

This effect is also observable in the graph, as some of the earlier spikes in positive vs. Negative sentiment prevailed around Solana’s local peaks. So far, SOL has continued to rise despite investor FOMO, but given the historical trend, it’s possible that a top could be reached soon if social media buzz remains high.

SOL price

Solana continued its recent rally with a 4% gain over the past day, pushing its price above $153.

Solana price chart

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