Solana’s 4th Position at Risk, Will XRP Beat SOL?
Solana (SOL), the world’s fourth-largest cryptocurrency by market capitalization, will be replaced by Ripple’s native token XRP. SOL appears to be consolidating in recent days, while XRP surged nearly 95% during the same period to reach a market cap of $106.5 billion, outperforming Binance Coin (BNB).
Solana (SOL) Technical Analysis and Upcoming Levels
However, this consolidation on the four-hour time frame appears to be a bearish inverted head and shoulders price action pattern. According to expert technical analysis, SOL looks bearish and if it fails to hold the $226 level, it is likely to fall by 10% and potentially hit the $202 support.
Conversely, if SOL closes a four-hour candle above $245, this bearish thesis may fail.
On the positive side, SOL is trading above the 200 exponential moving average (EMA) on both the daily and four-hour time frames, indicating an uptrend. Meanwhile, SOL’s Relative Strength Index (RSI) suggests that the altcoin still has the potential to rise in the coming days. Currently, SOL’s RSI is at 49, which is approaching oversold territory, further highlighting a potential buying opportunity.
Whale activity indicates interest in SOL
In addition to technical analysis, on-chain analytics firm Coinglass reports that whales are showing strong interest in altcoins. According to SOL spot inflow/outflow data, the exchange has recorded significant outflows of SOL worth $182 million since November 23, 2024. This significant outflow suggests that whales may be moving coins from exchanges to their wallets.
The cryptocurrency community views this major coin withdrawal as a potential buying opportunity, indicating that an upside rally is possible.
SOL Current Price Momentum
At press time, SOL was trading near $240, with the price down 1.75% in the past 24 hours. Its trading volume fell by 3% during the same period, indicating reduced participation from traders and investors amid continued price consolidation.
