Solana (SOL) has been a top contender in the cryptocurrency market, holding the fourth-largest position by market cap. However, recent price movements have indicated a potential shift in rankings, with Ripple’s XRP making significant gains and threatening to overtake SOL. While SOL has been consolidating, XRP has surged by almost 95%, reaching a market capitalization of $106.5 billion and outperforming other major cryptocurrencies like Binance Coin (BNB).
Technical analysis of SOL on the four-hour time frame reveals a bearish inverted head-and-shoulders pattern, suggesting a potential 10% decline if the $226 support level is breached. This could lead SOL to test the support level at $202. On the contrary, a break above the $245 resistance level could invalidate this bearish scenario.
Despite the short-term bearish outlook, SOL is currently trading above the 200 Exponential Moving Average (EMA) on both daily and four-hour charts, indicating an overall uptrend. Additionally, the Relative Strength Index (RSI) for SOL is at 49, near the oversold region, signaling a possible buying opportunity and potential for a rally in the near future.
In a recent report by on-chain analytics firm Coinglass, it was revealed that whales have been actively accumulating SOL, with a significant outflow of $182 million from exchanges to individual wallets since November 23, 2024. This whale activity suggests a strong interest in the altcoin and could be seen as a bullish signal by the crypto community.
As of the latest data, SOL is trading around $240, experiencing a slight drop of 1.75% in the past 24 hours. The decrease in trading volume by 3% indicates a temporary slowdown in market activity, possibly due to consolidation and profit-taking by traders and investors.
Overall, while SOL may be facing some short-term challenges, the underlying technical and on-chain indicators suggest a potential for a price recovery and further upside momentum in the near future. Traders and investors are advised to closely monitor key support and resistance levels to make informed decisions in this dynamic cryptocurrency market.