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Chandan Gupta
Chandan Gupta
Author
- Nov 30, 2024 16:32 UTC
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Solana’s 4th Position at Risk, Will XRP Beat SOL?
With ongoing price consolidation, Solana's (SOL) market cap has been significantly impacted as XRP nears overtaking it.
SOL could hold its 4th position if it closes a four-hour candle above the $245 level.
SOL spot inflow/outflow data shows that exchanges have recorded a significant outflow of $182 million worth of SOL.
Solana (SOL), the world’s fourth-largest cryptocurrency by market cap, is poised to lose its position to Ripple’s native token, XRP. In recent days, SOL appears to be consolidating, while during the same period, XRP has soared nearly 95%, reaching a market capitalization of $106.5 billion by outperforming Binance Coin (BNB).
Solana (SOL) Technical Analysis and Upcoming Levels
However, this consolidation on the four-hour time frame appears as a bearish inverted head-and-shoulders price action pattern. According to expert technical analysis, SOL appears bearish, and if it fails to hold the $226 level, there is a strong possibility of a 10% decline, potentially reaching the support level at $202.
Conversely, if SOL closes a four-hour candle above the $245 level, this bearish thesis may fail.
On the positive side, SOL is trading above the 200 Exponential Moving Average (EMA) on both daily and four-hour time frames, indicating an uptrend. Meanwhile, SOL’s Relative Strength Index (RSI) suggests that the altcoin still has the potential to rally in the coming days. Currently, SOL’s RSI stands at 49, near the oversold area, further highlighting a potential buying opportunity.
Whale Activity Signals Interest in SOL
In addition to technical analysis, on-chain analytics firm Coinglass reported that whales have shown strong interest in the altcoin. According to SOL spot inflow/outflow data, exchanges have recorded a significant outflow of $182 million worth of SOL since November 23, 2024. This notable outflow suggests that whales may be transferring the tokens from exchanges to their wallets.
The crypto community views this significant token withdrawal as a potential buying opportunity, suggesting a possible upside rally.
SOL Current Price Momentum
At press time, SOL is trading near $240 and has registered a price drop of 1.75% in the past 24 hours. During the same period, its trading volume has fallen by 3%, indicating reduced participation from traders and investors amid ongoing price consolidation.
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