Solana (SOL) has been facing a tough 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 over the past few months, highlighting the disconnect between interest and price action.
Solana is better than Ethereum
Solana’s demand is outpacing Ethereum, as evidenced by the Hot Realized Cap metric. According to Glassnode, Solana’s Hot Realized Cap reached $9.5 billion this week, more than double Ethereum’s $4.1 billion. This indicates continued investor interest and increased activity within the Solana network.
“When comparing the volume of new capital entering assets between Solana and Ethereum, we can see that new investor demand for Solana, for the first time in history, has surpassed Ethereum, highlighting the strong demand profile. Notably, the sharp increase in Solana’s Hot Realized Cap before the start of 2024 was the bullish inflection point in the SOL/ETH ratio, with new capital inflows driving the growth,” Glassnode noted.
Solana’s overall momentum presents a mixed picture. Solana’s realized cap change grew by just 2.19%, far less 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 short-term bearish outlook, suggesting that Solana network activity has not kept up with increasing demand. For Solana to regain stronger momentum, it will require a recovery in realized cap growth and broader market support.
SOL Price Prediction: Resistance on the Horizon
Solana price is currently struggling to reclaim $200 as support, standing at $185 at the time of writing. This is in line with the short-term bearish outlook, suggesting that SOL may continue to face resistance above the key psychological level.
Hovering above the $175 support level, Solana remains in a critical position. Losing this support could expose the altcoin to a correction, with $155 emerging as the next important support level. Such a drop would deepen the negative sentiment and delay any recovery attempts.
However, positive market signals could enable Solana to turn $200 into support, invalidating the negative thesis. Achieving this milestone could trigger a rally towards $221 or higher, restoring confidence in the cryptocurrency’s bullish trajectory. Sustained demand and broader market optimism would be key drivers for this scenario.