Solana (SOL) has been facing a challenging price trend recently as its decline has stalled, but the altcoin is struggling to reclaim $200 as support.
This difficulty persists despite Solana surpassing Ethereum in demand in recent months, highlighting a disconnect between interest and price action.
Solana is doing better than Ethereum
Demand for Solana has been outpacing Ethereum, as evidenced by the Hot Realized Cap metric. According to a report by Glassnode, SOL’s Hot Realized Cap reached $9.5 billion this week, more than double Ethereum’s $4.1 billion. This indicates sustained investor interest and increasing activity on the Solana network.
When we compare the magnitude of new capital entering the asset between Solana and Ethereum, we can observe that new investor demand for Solana, for the first time in history, outpaced Ethereum, highlighting its strong demand profile. In fact, the sharp increase in the Hot Realized Cap for Solana ahead of the start of 2024 marked the upward inflection point in the SOL/ETH ratio, with the influx of new capital driving growth, Glassnode noted.
Solana Hot Realized Cap. Fonte: Glassnode
Solana’s macro momentum presents a mixed outlook. The change in realized cap for SOL grew by just 2.19%, significantly lower than Bitcoin’s 10.87% and Ethereum’s 5.43%. This disparity highlights a faster loss of momentum for Solana compared to the two largest cryptocurrencies.
This slower growth in realized cap points to a bearish near-term outlook, suggesting that activity on the Solana network has not kept pace with its growing demand. For SOL to regain stronger momentum, it would need a resurgence in realized cap growth and broader market support.
Solana Realized Cap. Fonte: Glassnode
SOL Price Prediction: Resistance Ahead
Solana price is currently struggling to reclaim $200 as support, sitting at $185 at the time of writing. This aligns with the bearish short-term outlook, indicating that SOL may continue to face resistance to break above the key psychological level.
Hovering above its $175 support level, Solana remains in a precarious position. Losing this support could expose the altcoin to a correction, with $155 emerging as the next significant support level. Such a decline would deepen the bearish sentiment and delay any recovery attempts.
Solana Price Analysis. Source: TradingView
However, positive market signals could allow Solana to flip $200 into support, invalidating the bearish thesis. Reaching this milestone could trigger a rally towards $221 or higher, restoring confidence in the cryptocurrency’s upward trajectory. Thus, sustained demand and broader market optimism would be the main drivers for this scenario.
The article Solana Outperforms Ethereum in Q4, But Fails to Recover $200 appeared first on BeInCrypto.
