Solana Price Breaks Historical High
This morning, Solana ($SOL), known as the Ethereum killer, surged past its historical high, soaring 16.96% in the past 7 days and over 50% in the past 30 days, reaching $262.91 at the time of writing.
Image source: CoinGecko $SOL Price Trend
In contrast, Ethereum ($ETH), commonly referred to as the 'Second Brother', although firmly holding the position of 'smart contract big brother', has seen much less price volatility recently, with only a 28% increase in the past month, seemingly still 'cultivating in a dream', which has led many to joke: 'The second brother is still sleeping, while the younger brother has already soared to the sky!'
The Rise of $SOL
During this price surge, $SOL has shown strong resilience, with its BB trend indicator (BBTrend) currently reaching 9.56. This is a Bollinger Bands-based indicator specifically used to measure the direction and strength of price trends, with positive values indicating an upward trend and negative values indicating a downward trend.
Since November 18, the BB trend indicator for $SOL has maintained a strong upward trend, although not as fierce as at the beginning of the month, it is still enough to keep $SOL investors feeling confident.
ADX Warning: Trend Strength Weakening
However, analysts also remind that the growth momentum of the BB trend indicator has slightly slowed down, indicating that the current upward trend is stabilizing. If buying pressure further weakens, the price of $SOL may face consolidation and a pullback in the short term.
In addition to the BB trend, another key indicator - the Average Directional Index (ADX) - also reveals another side of the market. Currently, the ADX value for $SOL is 20.71, just barely maintaining the 'trend exists' level, with trend strength noticeably lower than the previous peak of 50+. Generally speaking, an ADX above 25 is considered strong, while below 20 indicates a potentially weak or nonexistent trend.
Although SOL's positive index (D+) has reached 27.5, far exceeding the negative index (D-) of 13.8, indicating that bullish sentiment still prevails, if ADX cannot rebound above 25, the existing bullish momentum may struggle to drive prices to achieve a larger increase.
Technical analysis indicates that the key support levels for $SOL are at $204 and $194. These two positions will be key points for the market bulls and bears in the short term. If these support levels cannot hold, the price may further drop to $154.
Investor Breaks Down: Second Brother is Still Sleeping
With $SOL performing strongly, Ethereum ($ETH), which is performing flat or even slightly 'soft', has been a topic of discussion for many. Besides not meeting price expectations, compared to Solana's rapid rise in the DeFi and NFT ecosystem, Ethereum's on-chain development seems a bit stagnant.
Regardless, Solana has proven itself to be an undeniable force in the market, and whether 'Second Brother' Ethereum can awaken and catch up will likely take time to test. For now, Ethereum ($ETH) investors may have to continue holding on, anticipating the arrival of the next bigger market wave.
[Disclaimer] The market carries risks; investment should be cautious. Analyst views are for reference only, and users should consider more diverse indicators to determine whether to invest, and consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
'Did we win big this time? Solana breaks historical high, investors break down: Second brother is still sleeping.' This article was first published in 'Crypto City'.
