Santiment, a prominent analytics firm, said that the increase in trading volume in one cryptocurrency sector was a precursor to the overall market rally last month.
Santiment said it is looking at volume spikes across different areas of cryptocurrencies to see which areas could be signaling future price increases.
According to the firm, the current cryptocurrency rally began on July 8, when investors poured capital into Bitcoin (BTC) and Layer 1 projects.
“All the major volume spikes over the past month have come from a variety of sectors.
The increase in trading volume of Bitcoin and Layer 1 assets will lead to future cryptocurrency price increases.
The increase in trading volume of AI (artificial intelligence) and big data coins is neutral.
As the volume of Mimecoin increases, it reaches its peak.”
According to Santiment’s charts, the volume spikes in Bitcoin and Layer 1 projects are a sign that traders are cautiously optimistic. Meanwhile, the surge in volume in Mimecoin is a sign that greed is taking over after a major market recovery.
In the case of Solana (SOL), Santiment sees the Ethereum (ETH) competitor continuing to surge as long as traders question Solana’s performance.
“Solana’s faithful have been rewarded for their patience as the price has increased by +33% since July 4th. The increase was fueled by the crowd’s skepticism about SOL.
A $200 SOL could be reached soon enough, until FOMO (Fear of Missing Out) replaces FUD (Fear, Uncertainty, Doubt).”
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