As Bitcoin price tries to move away from the $26,500 support, Solana (SOL) is leaving its competitors positively. On the other hand, some altcoin areas are starting to lose momentum with whale sales.
Solana (SOL) posts impressive market-independent gains
On May 13, most cryptocurrencies were green or red around 1%. Meanwhile, the market’s overall value saw a slight increase of 1.5%. On the other hand, Solana is outpacing ETH and BTC with over 2.5% intraday gains. The price managed to climb above the 9 and 20 EMA lines, which are technically bullish signals.
Data from CoinMarketCap shows SOL is up more than 5% at one point today. Its price has registered a new local high at $21.24. An important technical improvement is that it managed to break above the 9 and 20 EMA lines on the 4-hour chart. This move signals that SOL price has entered a short-term bullish cycle and may continue to rise in the next 24 hours.
Meme coin market ‘oversold’ as Solana rises
The meme coin market continues to stay on the agenda with Pepe Coin, which has been rallying since April, and then new projects. However, the trend started to lose momentum in May. According to market analysis firm Kaiko, the daily trading volume of meme coins has dropped significantly from $1 billion to nearly $500 million.
Kaiko stated that this 50% drop was due to investors taking profits and moving from meme tokens.
#Meme tokens have lost traction this week as traders took profit and daily trading volume halved from more than $1 billion to about $500 million. pic.twitter.com/PLwbxHZodo
— Kaiko (@KaikoData) May 12, 2023
The chart shared by Kaiko shows that Dogecoin (DOGE) has taken the worst hit in terms of daily trading volume. DOGE’s trading volume reached almost $1.5 billion from late March to early April. However, it fell below $0.5 billion earlier this month.
However, it seems that the DOGE hysteria has only moved on to the newly released meme coin PEPE. Earlier this month, PEPE volume exceeded $1 billion, according to CoinMarketCap. Currently, the 24-hour trading volume is $996,129,278. cryptocoin.comAs we have reported, on May 13, Elon Musk rally again with his tweet.
Bitcoin sees disinterest from its long-term investors
While Solana is the key altcoin performance of the week, data shows that Bitcoin is losing its long-term investors. According to the latest data from Glassnode, Bitcoin (BTC) has hit a 10-month low in terms of the number of Bitcoin outputs spent after one to two days of inactivity.
This metric measures the number of Bitcoin outputs spent in the last seven days after at least one and two years of inactivity.
📉 #Bitcoin $BTC Number of Spent Outputs with Lifespan 1y-2y (7d MA) just reached a 10-month low of 164.214
Previous 10-month low of 164.274 was observed on 13 July 2022
View metric:https://t.co/LkamNRCCB3 pic.twitter.com/qf2xSrAPAF
— glassnode alerts (@glassnodealerts) May 13, 2023
According to Glassnode data, the metric hit 164,214 on May 13, the lowest level since July 13, 2022. It also suggests that long-term investors sell or transfer. This shows a lack of confidence in Bitcoin’s long-term growth prospects among some investors. Additionally, it is interpreted that some investors are turning to the short-term view on BTC.
