SOL and AVAX see gains amid corrections looming due to FOMO
|- SOL and AVAX have risen around 8% in the past 24 hours.
- Santiment's data suggests FOMO is the major cause of SOL's price rally, and it may see a price correction.
- AVAX may continue to rise, as Santiment data suggests FOMO didn't influence its rally.
Solana (SOL) and Avalanche (AVAX) have rallied by 9% and 7%, respectively, on Thursday following a slight recovery across the crypto market. However, Santiment data reveals FOMO as the major force behind SOL's rise, while AVAX has had little influence from FOMO on its price.
AVAX surges alongside SOL as crypto market rebounds
In a recent X post, Santiment released key data suggesting what has been spurring a price increase for SOL and AVAX, and why they could face potential corrections.
With both tokens surging around 8%, Santiment's social volume data suggests that FOMO was the major reason for SOL's rise after it saw key market-moving developments on Thursday. The data further suggests that SOL may experience a correction soon since FOMO likely fueled the recent demand.
VanEck's recent S-1 filing for a Solana ETF may have caused the recent price hike in SOL. Another reason for its rise may be GSR's announcement that it has gone long on SOL, commenting on its "superior technology" and how it "continues to distance itself from the pack."
A correction is unlikely if SOL continues trading higher when the market settles.
SOL & AVAX Social Volume
Concurrently, AVAX price also shot up by 8% on Thursday, with little influence from FOMO or high social volume. The data from Santiment suggests that since AVAX rallied without seeing increased social volume/FOMO, it may sustain the price rise.
The two price surges highlight contrasting dynamics in the crypto market, showing how psychology can impact price increases. While one token is experiencing a surge likely driven by FOMO, the other's rise seems more organic.
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