- Dogecoin flipped Solana on 18 August to reclaim its 8th spot on the list of top cryptos.
- Though a few metrics were bullish on SOL, market indicators suggested otherwise.
Over the last week,the market capitalizations of Dogecoin [DOGE] and Solana [SOL] were closely knit. This allowed both tokens to flip each other on multiple occasions. A few days ago, SOL flipped DOGE to become the eighth largest crypto. However, the good days did not last long, as DOGE quickly reclaimed its spot. The reason behind this episode was revealed upon a look at their metrics and daily charts.
Read Solana’s [SOL] Price Prediction 2023-24
Solana and Dogecoin are neck-to-neck
A look at both the cryptos’ market caps revealed that there were several instances when both flipped each other over the last week. Though the difference in their prices was massive, their market caps remained close to each other, with only a slight difference of a few thousand dollars.
According to CoinMakretCap, at the time of writing, Solana had a market cap of $8.828 billion, while Dogecoin’s market cap was $9 billion, giving it the edge.
Source: Santiment
A look at the market sentiment around both tokens clearly pointed out that DOGE was the leader. This was evident from the drop in SOL’s weighted sentiment, while the same metric for DOGE remained high.
Dogecoin last flipped Solana on 18 August to claim its spot. The 4-hour chart of DOGE showed what helped the memecoin.
During that time frame, DOGE’s MACD displayed a bullish crossover. Its Money Flow Index (MFI) also registered a sharp uptick, helping the coin to marginally increase its value.
Source: TradingView
Will Solana be able to beat DOGE?
While DOGE’s price went up by more than 1% in the last 24 hours, SOL only managed to push its price up by 0.18%. Nonetheless, a few of the metrics were bullish on SOL, suggesting a further price uptick in the days to follow.
As per Santiment’s chart, SOL’s open interest dropped substantially. A decline in the metric usually means that the on-going price trend might end soon. Moreover, Solana’s DyDx and Binance funding rates were red, further increasing the chances of a trend reversal.
Source: Santiment
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However, a look at SOL’s daily chart painted a bearish picture. The distance between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was shrinking, indicating a possible bearish crossover soon.
The Relative Strength Index (RSI) was also resting below the neutral mark. This meant that the chances of SOL going ahead of DOGE in the near term were unlikely. Nonetheless, the Chaikin Money Flow (CMF) registered an uptick, which was a bullish development.
Source: TradingView
