NEAR, STX, SOL: Three altcoins likely to create price tops soon as FOMO peaks

Near Protocol (NEAR), Stacks (STX) and Solana (SOL) are among the top gainers, recording double-digit gains despite Bitcoin struggling to build support above $44,200. Late investors as well as the sidelined ones look from the fences as the early bloomers rake in profit. With this, Santiment data points to rising social volumes, pointing to the need for a cautious approach in trading these altcoins.

Also Read: Solana price could rise 20% provided Bitcoin builds support above $44,200

NEAR, STX, and SOL likely to correct over FOMO

Near Protocol, Stacks, and SOL token holders boast upwards of 18%, 17%, and 12% in daily gains after NEAR, STX, and SOL went on a tear that climaxed between December 18 and 21.

NEAR/USDT 1-day chart, STX/USDT 1-day chart, SOL/USDT 1-day chart

After posting double-digit gains, behavior analytics tool Santiment, indicates a significant rise in social volume for the three altcoins. A rise in social volume points to an increasing amount of mentions of the coin on more than a thousand crypto-related social media channels.

NEAR, STX, SOL Social Volume

According to Santiment, with this kind of mainstream attention, late investors or the sidelined lot are likely to chase FOMO, the fear or missing out, which is recipe for a possible price top meaning a correction could be underway.

Judging from the Relative Strength Index (RSI), NEAR and STX tokens are overbought above 70, a stance that often precipitates a correction. For SOL, however, there could still be more room to the north. Nevertheless, the indicator appears subdued across the board, moving horizontally to show momentum is easing.

NEAR, STX, SOL RSI indicator on the 1-day chart

It therefore calls for caution, particularly for traders looking to take long positions, but conducting ones own research remains the most advisable move.

Meanwhile, legendary investor Tim Draper has expressed excitement for STX, saying Most of what I've been investing in have been things that start to move the important applications over to Bitcoin. So I think that's a really interesting trend and we're thinking it's going to go the way Microsoft did."

Drapper’s comments, featured in an interview with CoinBureau's Jessica Walker, were inspired by Bitcoin-based NFT projects like Ordinals, with Stacks being a layer 2 network designed to enable smart contracts on bitcoin.