The recent market movements have showcased a divergence between Solana [SOL] and Arbitrum [ARB], along with other Layer 2 assets. While Solana expe rienced a notable uptrend in both price and social dominance, Arbitrum and its counterparts faced declines in social volume and price action.
This contrasting scenario has set the stage for a unique narrative within the realm of blockchain ecosystems.
Diverging Social Volumes for Solana and Arbitrum
Insights from Santiment reveal the divergent paths taken by Solana and Arbitrum in terms of social volume in recent days. Solana witnessed a significant increase in social volume, with spikes exceeding 3% on two separate occasions this week.
On October 13, the social volume peaked at 3.8%, followed by another surge to 3.6% on October 17.
This surge indicated that SOL dominated over 3% of conversations related to cryptocurrencies during the week.
However, it is noteworthy that Solana’s current social volume has slightly decreased to around 2.7%.
On the other hand, Arbitrum’s social volume remained relatively low. Despite experiencing some spikes, the highest recorded was 1.4% on the same day when SOL reached 3.8%.
Currently, Arbitrum’s social dominance has further declined to approximately 0.09%.
Analysis of Price Trends for Solana and Arbitrum
Examining the daily price charts shows that Solana has been on an upward trajectory in recent weeks. This week, SOL’s price peaked at $163.14, marking gains of 5.86% from its recent low.
As of now, the price is above the 50-day Moving Average (MA) of $142.25 and the 200-day MA of $150.71, indicating bullish trends in the short and long terms.
The breach of these crucial moving averages by SOL, coupled with a neutral Relative Strength Index (RSI), hints at the possibility of further upward movement.
In contrast, Arbitrum has witnessed limited upward momentum, remaining within a narrow range. It continues to trade below its 50-day MA of $0.5497 and 200-day MA of $0.8111, signaling a bearish trend in the medium term.
Moreover, the 200-day MA significantly exceeds the current price, with the 50-day MA marginally above it.
Future Prospects for SOL and ARB
This week, Solana has shown greater strength compared to Arbitrum. SOL’s breach of key moving averages and approaching overbought territory on the RSI indicate buyer dominance, suggesting a potential continuation of the uptrend.
Conversely, Arbitrum remains in consolidation mode, displaying signs of recovery but lacking the bullish momentum seen in Solana. The need to surpass the 50-day MA is crucial for ARB to attract buyers and signal stronger movement.
Despite the subdued attention towards ARB, as indicated by its lower social dominance, there is potential for significant returns should it experience a surge. Traders often shift focus to lesser-known assets like ARB after established coins such as SOL have made substantial gains, possibly fueling a price increase.