Solana [SOL] has drawn significant attention in the cryptocurrency space in recent months, marking a notable shift in the rankings of top digital assets. Solana kicked off the new year with a milestone performance, surpassing Binance Coin [BNB] and solidifying its position as a key market player.
Whether Solana's momentum can be sustained may allow it to surpass XRP and climb higher in rankings.
Solana surpasses XRP—further observation
In fact, Solana has continued to receive attention in recent weeks, surging 58.75%, as indicated by its daily price chart, showing steady recovery and strong upward momentum. This performance solidifies its position ahead of Binance Coin in market capitalization, increasing the likelihood of challenging XRP similarly.
In contrast, XRP's price trend has been relatively lackluster. While XRP once gained strength, its growth trajectory has been overshadowed by Solana's sustained bullish momentum. SOL has been able to maintain higher trading volumes and investor interest, indicating stronger fundamentals or market sentiment.
As SOL's market cap gradually approaches that of XRP, the differences in their respective price trends may signal a broader shift in investor preference, particularly towards assets with high scalability and ecosystem development.
Indicators during price stagnation show mixed signals
The chart highlights the stagnation of XRP's price trend relative to the volatile on-chain indicators.
For instance, the actual market cap HODL volatility shows a significant decrease in the number of short-term holders, indicating reduced speculative trading activity. Meanwhile, the number of mid-term holders has seen a moderate increase, suggesting that despite limited price momentum, confidence in holding XRP remains strong.
The supply on exchanges has remained high, reflecting potential selling pressure or investors' unwillingness to move tokens off trading platforms. Moreover, the MVRV Z score assessing overvaluation or undervaluation seems to be in a neutral zone—highlighting a lack of decisive sentiment in the market.
These indicators together depict an uncertain state for the XRP market, with neither clear bullish signals nor bearish signals. In contrast, Solana's more favorable on-chain data and price performance may give it an advantage in a potential market cap flip with XRP.
SOL Technical Analysis: Short-term target prediction
On January 4, 2025, the price of SOL was $215.4, up 2.15% in the past 24 hours and up 15.88% in the past week. This aligns with the upward trend in the cryptocurrency market, with BTC nearing $100,000.
The momentum oscillation indicator (AO) shows positive momentum, with green bars extending upwards, indicating increased buyer control. The relative strength index (RSI) has entered the overbought zone at 70. This suggests that the market may experience a short-term cooldown before another round of upward movement.
The key resistance level is at $225. Breaking this level could drive Solana's price prediction up to $263.83, which is a key ATH target. Beyond that, the next psychological resistance level is at $300, consistent with a possible long-term bullish trajectory. However, if bears come back strong, the SOL price will fall below the $200 support level.
Driven by technological trends and market sentiment, Solana's price momentum is strong and is expected to reach new highs. Whether it can reach $3,000 depends on breaking through key resistance areas and maintaining the current positive trend.
Can SOL flip XRP?
SOL's continued price recovery, strong trading volume, and positive on-chain indicators reflect a very favorable market sentiment towards it. Meanwhile, XRP may face resistance, with stagnant price trends and mixed on-chain signals, including increased exchange supply and reduced activity among short-term holders.
The outcome of this battle may depend on broader market trends, ecosystem development, and investor sentiment. If Solana can maintain its upward trajectory and leverage its scalability and network activity, a reversal for XRP may be imminent.