Near Protocol (NEAR), Stacks (STX), and Solana (SOL) are among the top gainers, posting double-digit gains despite Bitcoin struggling to establish support above $44,200. Late investors and those pushed to the sidelines are looking over the fence as early bloomers take profits. However, Santiment data points to increased social volumes. This reveals the need for a cautious approach in trading altcoin projects.
Watch out for FOMO in NEAR, STX and SOL
Near Protocol, Stacks, and Solana token holders made significant profits after NEAR, STX, and SOL peaked between December 18-22. Moreover, for SOL and NEAR, this increase continues today. Solana reached the $100 mark and dethroned Binance Coin (BNB). NEAR moved similarly today, with the altcoin seeing a daily gain of around 25%. However, STX, which boomed yesterday, retreated a bit today.
After recording double-digit gains for these altcoins, behavioral analysis tool Santiment shows a significant increase in social volume for all three altcoins. The increase in social volume indicates that cryptocurrency is increasingly mentioned across more than a thousand crypto-related social media channels.
With that kind of mainstream attention, late investors or those who have been pushed to the sidelines will likely be haunted by FOMO, or fear of missing out, according to Santiment. This is a recipe for a possible altcoin price peak. That means a correction is coming.
RIS signals overbought for these 3 altcoins
Judging by the Relative Strength Index (RSI), NEAR and STX tokens are overbought above 70. This usually triggers a correction. But there was more room for SOL towards the north. As a matter of fact, today altcoin Solana reached the $ 100 mark. However, the indicator looks subdued overall. It moves horizontally to show that momentum is decreasing.
Therefore, traders, especially those who want to take long positions, need to be careful. However, doing your own research remains the most advisable course of action.
Meanwhile, cryptokoin.comAs you follow from , legendary investor Tim Draper expressed his excitement for STX. He said most of the things he’s invested in are things that are starting to move important applications to Bitcoin. “So I think this is a really interesting trend,” Draper said. “I predict it will go the way Microsoft did.” said. After this, the altcoin price skyrocketed.
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