Solana Outperforms Arbitrum as Social Volume Diverges

SOL’s value increased by 5.86% this week, with social dominance reaching over 3.8%
ARB’s social engagement remained subdued, dropping to 0.09% as the token traded below significant moving averages

This week, Solana [SOL] experienced a notable price upturn along with a spike in social dominance. Conversely, Arbitrum [ARB] and other Layer 2 assets encountered significant declines regarding social volume and price movement.

This situation has established a contrasting narrative between these blockchain platforms.

As reported by Santiment, the social volume for Solana and Arbitrum has followed different trajectories in recent days. For example, Solana has witnessed a significant rise in social volume, climbing over 3% on two separate instances this week.

On October 13, social volume spiked to 3.8%, and another increase of 3.6% was noted on October 17.

This suggests that SOL comprised over 3% of all cryptocurrency discussions during the week.

However, it’s important to mention that Solana’s social volume had slightly declined to around 2.7% by the time of writing.

Source: Santiment

In contrast, ARB’s social volume remained fairly low. Although it experienced some increases, the highest noted on the same day SOL reached its peak was only 1.4%.

As of now, Arbitrum’s social dominance had further declined to around 0.09%.

Price trends of Solana and Arbitrum

The daily price analysis indicates that Solana has been on a rising trend in recent weeks. For example, this week, SOL’s price peaked at $163.14, reflecting a gain of 5.86% from its most recent low.

As of the latest update, the price was above the 50-day Moving Average (MA) of $142.25 and the 200-day MA of $150.71, demonstrating a bullish trend for both the short and long term.

Source: TradingView

Moreover, SOL’s movement above these crucial moving averages, along with a neutral Relative Strength Index (RSI), suggests potential for further upward movement.

On the other hand, Arbitrum has shown limited upward movement and has been consolidating within a tight range for the past few weeks. It remains below its 50-day MA of $0.5497 and 200-day MA of $0.8111, indicating a bearish trend in the medium term.

The 200-day MA significantly exceeds the current price, while the 50-day MA is only marginally above it.

Source: TradingView

Looking ahead for SOL and ARB

This week, Solana has outperformed Arbitrum. The token’s breakout above key moving averages and its RSI approaching overbought levels suggest that buyers are firmly in control, increasing the likelihood of continued upward momentum for Solana.

In contrast, Arbitrum remains stagnant. While it has started to show some recovery signs, it lacks the bullish momentum demonstrated by Solana.

ARB needs to break above its 50-day MA to entice more buyers and indicate stronger price movements.

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Nonetheless, with ARB garnering less attention, as evidenced by its diminished social dominance, it carries the potential for higher returns should it begin to rally.

Historically, when prominent coins like SOL have realized substantial gains, traders often pivot towards lesser-known assets such as ARB. This could trigger a potential price upturn on the charts.