The recent increase in Solana’s Hot Realized Cap suggests that network demand is strong and has surpassed Ethereum for the first time.
Despite this significant success, Solana’s price has struggled to stay above the $200 level amid market volatility.
"The continued interest in Solana signals a significant shift in investor behavior, and this could shape future price action," he said.
Solana’s Hot Realized Cap is moving past Ethereum, while the $185 price levels could cap bullish momentum. Market resistance and forecasts also offer insight into this development.
In a significant development, Solana’s Hot Realized Cap has reached $9.5 billion, surpassing Ethereum’s $4.1 billion. This data reflects the total value of the most recent coins moving on-chain, indicating that demand for Solana is increasing. According to Glassnode’s report, Solana has seen a significant shift in its capital dynamics, with investor transactions increasing.
“The unprecedented demand for Solana demonstrates a strong profile of new capital flows that are outpacing Ethereum for the first time,” Glassnode said. “This trend could signal a broader adoption phase for the Solana ecosystem.” These developments mark a transformative moment for Solana and accelerate its evolution in the competitive crypto landscape.
However, despite this 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 suggests that Solana’s network activity is not meeting investor expectations, which could limit bullish moves in the short term.
Solana is currently trading at around $185 and is struggling to break above the critical $200 level. This level of resistance is quite important as a drop below $175 could expose SOL to further corrective action. The next support level is $155.
In this uncertain environment, investor sentiment could decline and if SOL fails to show sufficient resistance at these support levels, it could lead to an extended bear market. The analysis reveals that although the altcoin has strong fundamentals, it is sensitive to current market conditions.
On the other hand, exceeding $200 could bring positive scenarios to the agenda and contribute to the price rise towards $221. In future scenarios, investor confidence and general market conditions will be the determining factors in SOL's price movements.