Silver lining for Solana? Token flips Dogecoin amidst market downturn
- SOL suffered less decline in value compared to DOGE on a daily timeframe.
- Solana’s market cap hit $9 billion, with DOGE remaining below the threshold.
On 17 August, a Messari report highlighted a significant shift in the market capitalization rankings of Solana and Dogecoin. Reportedly, Solana [SOL] had overtaken Dogecoin [DOGE] in market cap, with Solana standing at approximately $9.4 billion compared to Dogecoin’s $9.2 billion at the time of the report.
— Messari (@MessariCrypto) August 17, 2023
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But despite these figures, CoinMarketCap’s data indicated a decrease in these market caps, although the relative positions remained unchanged.
As of this writing, Solana continued to hold the eighth position with a market cap exceeding $9 billion, while Dogecoin occupied the ninth spot with approximately $8.7 billion.
The market was experiencing a downtrend at press time, and the decrease in both SOL and DOGE prices was the primary factor influencing their respective market capitalizations.
Solana and Dogecoin face major downtrend
Examining the daily price trend of Solana on a chart revealed that it hadn’t escaped the broader decline in the cryptocurrency market. The chart displayed a more than 14% decrease in value between 15 and 17 August.
As of this writing, a minor uptick was evident, with SOL trading at approximately $22 and registering a modest gain of over 1%.
Also, it had initially maintained a positive trajectory above the neutral line on its Relative Strength Index (RSI), but the subsequent series of declines pushed it below this threshold.
At press time, the prevailing trend was bearish, albeit the slight uptick had nudged it slightly above the 40 RSI level.
In contrast, Dogecoin’s decline had a more extended duration when examined on a daily timeframe. The chart indicated a nearly seven-day decline, resulting in a value reduction of over 20%. This extensive decline caused it to dip into the oversold zone on its RSI.
Nevertheless, the momentum saw a modest recovery, with DOGE trading around $0.06 and showing a marginal gain of over 1% at press time.
Furthermore, SOL was trending above its long Moving Average, with the short Moving Average serving as the resistance level. Conversely, DOGE was trending below its short and long Moving Averages.
Analyzing Solana’s TVL and stablecoin market cap
Amidst the overall decline in prices, Solana has managed to retain a stronger positive momentum. This favorable trend was reflected in its price movement and the Total Value Locked (TVL). Also, the stablecoin market cap has recently displayed a positive trajectory.
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A DefiLlama chart showed that Solana’s TVL had experienced remarkable growth over the past few months, sitting at $306.4 million at the time of publication. However, the recent price downturn appeared to have temporarily halted this growth, resulting in a minor decline.
On the other hand, the stablecoin market cap exhibited a sharp and notable increase. As of this writing, it had surged to around $1.6 billion.