- Solana is leveraging Bitcoin’s recent decline, gaining ground on Ethereum.
- As the momentum shifts, can ETH stage a resurgence?
Often referred to as the “Ethereum Killer,” Solana [SOL] has proven to be remarkably resilient in this bullish phase. It has earned this reputation not only due to its market capitalization but also by consistently ranking as one of the top gainers each week, while Ethereum [ETH] remains stagnant.
During this cycle, SOL has been flourishing as BTC reaches pivotal psychological milestones, drawing investors who are looking to reallocate funds to manage risk – a competitive advantage that ETH once enjoyed.
SOL takes precedence over ETH
Although ETH leads with a market cap of $300 billion, significantly higher than SOL’s $81 billion, recent developments reveal that SOL’s market cap has risen by over 5% while ETH has dropped by 3%.
This trend is particularly significant as it coincides with Bitcoin’s latest climb to nearly $70K, which represents a 16.67% rise in just ten days.
Typically, a heated market draws liquidity into high-cap altcoins, as cautious investors seek to redeploy their earnings.
In the past, when BTC peaked, ETH would enjoy notable gains. However, unlike prior cycles, SOL appears to have taken the lead this time.
Source : TradingView
Only four days prior, as BTC encountered resistance above its four-month downturn, SOL achieved a daily increase of 4% – its highest in the last week – marking a significant turning point.
The following day, BTC saw a 2% dip, solidifying $70K as the new local peak. In reaction, ETH followed suit, declining nearly 3% and continuing its downtrend.
In contrast, SOL’s buyers have successfully avoided a similar downturn. In fact, after overcoming the $160 resistance, SOL has surged, achieving this on its fourth attempt after three earlier failures.
Currently priced at $173, SOL may be approaching a correction, as the RSI indicates an overbought condition. With 83% of price movement in the last fortnight being upward, a trend reversal might be imminent.
Could this shift investor focus back to ETH?
A potential trend reversal may be on the way, but tread carefully
Previously, a report by AMBCrypto pointed out that ETH’s current pullback is a calculated tactic by traders to shake out weak hands.
This decline could pave the way for an upcoming breakout, enticing new buyers and prompting whales to continue accumulating – which may lead ETH to exceed $2,700.
Nevertheless, ETH’s rebound in this cycle is intricately linked to SOL. While ETH could be ready for a short-term rebound as it approaches support levels, achieving a breakthrough will hinge on closely observing SOL across various indicators.
Source : Artemis Terminal
Over the last month, Solana’s daily active addresses have soared by 175%, while Ethereum has only experienced a modest increase in the double digits.
This rise in activity is no accident. Solana has strategically positioned itself to surpass ETH through its high throughput, facilitating quicker and more affordable transactions.
So far, this approach has yielded dividends. SOL has efficiently taken advantage of the rising costs of ETH, generating impressive momentum this cycle and drawing significant interest from Bitcoin investors as well.
Read Solana’s [SOL] Price Prediction 2024–2025
In essence, SOL’s overall outlook seems to be significantly brighter than that of ETH, reinforcing its position as the leading altcoin for the foreseeable future.
While a correction could push SOL below $170, it remains well-positioned to outperform ETH, potentially complicating ETH’s journey to comfortably reach $2.7K.
