Solana’s Uphill Journey Despite Altcoin Market Fluctuations
Despite the volatility rocking the altcoin market, Solana, often dubbed as the Ethereum killer, has maintained its upward trajectory over the past two weeks. It continues to shine as one of the top-performing cryptocurrencies in the coveted top ten list. Notably, influential investors such as VanEck have revised their price predictions for Solana, setting the bar at an impressive $50. As a testament to its strength, the SOL price has soared to $44.
Solana and FTX: A Transfer of Strength
On-chain data has shed light on a significant development involving Solana and FTX, a prominent crypto exchange. A substantial portion of Solana held by FTX has been transferred to other exchanges. Despite this movement, the selling pressure initiated by FTX is being skillfully countered by Solana’s bullish investors.
Spot on Chain data reveals that FTX and Alameda have moved approximately $40 million to exchanges within the past 24 hours. These recent transfers align with the trends observed in recent weeks. Following a market fluctuation, SOL’s price entered a rising channel, sparking an upward movement. A notable milestone occurred in July when SOL breached the significant resistance level of $28.16.
If Solana manages to maintain its position above the $42.50 resistance mark, the upward momentum may persist, potentially leading to a test of the upper resistance level at $46.83. Holding steadfast at this level could pave the way for a crucial milestone: reaching the vital resistance level of $50 in the future.
However, a break in the rising support trendline could disrupt the upward momentum, causing the price to retreat to the $38.77 support level in the short term. In the event of a trend reversal, the downward movement might intensify, testing a lower support level of $33.29 in the days to come.
Is Solana the Ethereum Killer?
Solana is not just holding its ground; it’s outperforming even the most substantial altcoin, living up to its reputation as the Ethereum killer. A recent report by Kaiko Research highlights a consistent uptrend in the Solana (SOL) – Ethereum (ETH) ratio since September. This rally has pushed the ratio back to the levels observed before the FTX crypto exchange collapse in November 2022.
The SOL/ETH ratio serves as a barometer of Solana’s performance against Ethereum. An increase in the ratio indicates SOL’s superior performance compared to ETH. The Kaiko research report states:
Since September, SOL has clearly outperformed ETH, with the ratio surging from 0.011 to approximately 0.025, surpassing the ratio just before the FTX collapse.
