Solana Demand Eclipses Ethereum, But Why Can’t It Break $200?
Solana (Sol) has faced a challenging price trend recently, with its losses stalled, but the altcoin is struggling to regain support at $200.
Although Solana has outpaced Ethereum in demand over the past few months, this difficulty persists, highlighting the disconnect between interest and price action.
Solana performs better than Ethereum
Solana’s request It’s already outpacing Ethereum, as evidenced by the “Top Realized Caps” metric. According to a Glassnode report, SOL’s popular realized cap hit $9.5 billion this week, more than double Ethereum’s $4.1 billion. This indicates continued investor interest and increased activity within the Solana network.
“When comparing the size of new capital coming into an asset Solana and Ethereumwe can observe that Solana’s new investor demand exceeded Ethereum for the first time in history, highlighting its strong demand profile. Notably, the massive rise in Solana’s popular realized cap ahead of early 2024 marks an upward inflection point for the SOL/ETH ratio, with an influx of new capital fueling growth. ” Glassnode pointed out.
Solana’s Macro Momentum The outlook is mixed. SOL’s realized cap change only increased by 2.19%, significantly lower than Bitcoin’s 10.87% and Ethereum’s 5.43%. This disparity highlights how quickly Solana is losing momentum compared to the two largest cryptocurrencies.
Slowing realized cap growth points to a bearish short-term outlook, suggesting Solana’s network activity is failing to keep up with its growing demand. For SOL to regain stronger momentum, it will require a resurgence in cap growth and broader market support.
SOL Price Forecast: Resistance Ahead
Solana Prices It is currently struggling to reclaim $200 as support, with the price sitting at $185 at the time of writing. This is consistent with the bearish short-term outlook and suggests SOL may continue to face resistance as it breaks through key psychological levels.
Solana is hovering above the $175 support but remains volatile. Losing this support could expose the altcoin to a pullback, with $155 becoming the next significant support level. Such a decline would deepen bearish sentiment and delay any recovery attempts.
However, positive market cues may make Solana Flip $200 acts as support, invalidating the bearish thesis. Reaching this milestone could trigger a price rally to $221 or higher, restoring confidence in the cryptocurrency’s upward trajectory. Sustained demand and broader market optimism will be key drivers of this scenario.
Disclaimer
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