Solana’s recent Hot Realized Cap increase has seen it surpass Ethereum for the first time, an indication of strong network demand.
Despite this significant achievement, the price of SOL has been struggling to hold above the critical $200 level amid market volatility.
“The sustained demand for Solana suggests a significant shift in investor interest, which could impact future price action,” a COINOTAG analyst said.
Solana’s Hot Realized Cap is outpacing Ethereum, while price challenges at $185 could cap bullish momentum. Market resistance and forecast insights are also included in the report.
In a significant development, Solana’s Hot Realized Cap has reached $9.5 billion, surpassing Ethereum’s $4.1 billion level. This indicator reflects the total value of coins traded on the network, indicating a significant increase in demand for Solana. Glassnode’s data shows a significant shift in Solana’s capital dynamics and an increase in investor transactions.
According to Glassnode, “The unprecedented demand for Solana demonstrates a strong profile of new capital flows that are outpacing Ethereum. This trend could signal broader adoption for the SOL ecosystem.” These developments represent a transformational moment for Solana and set the stage for its continued evolution in the competitive crypto landscape.
However, despite the capital infusion into Solana, the realized value increase was only 2.19%, compared to 10.87% for Bitcoin and 5.43% for Ethereum. This mismatch represents potential weakness for Solana, as network activity lags behind investor expectations, suggesting that bullish momentum may be limited in the short term.
Solana is currently trading at around $185 and is struggling to regain the key support level at $200. This resistance level is critical as a drop below $175 could lead SOL into further corrective action, with the next support level being $155.
In this uncertain environment, investor sentiment could decline and if SOL fails to show resilience at these support levels, it could lead to a prolonged bear market. The analysis highlights that the altcoin is sensitive to current market conditions despite having strong fundamentals.
On the other hand, a move above $200 could bring positive scenarios, which could lead to a price rally towards $221. In future scenarios, investor confidence and broader market conditions will play a critical role in determining SOL price movements.