What you need to know as Solana takes on Cardano
- In the week, SOL’s price increased by more than 30%, while ADA’s price surged by 12%.
- SOL’s market indicators were bullish, but ADA’s on-chain metrics supported the bears.
Solana [SOL] was one of the tokens that benefited the most in the last bull market as its spruce skyrocketed. The price hike allowed the token to also increase its market capitalization, allowing it to flip Cardano [ADA]. A look at SOL’s daily chart revealed a few factors that played roles in increasing its price over the last few days. However, as the growth rate declined, the token’s popularity also fell. Will Solana be able to maintain its lead against Cardano over the coming days?
Read Solana’s [SOL] Price Prediction 2023-24
Solana’s bull rally looks promising
In the last bull run, Solana’s price registered an increase of more than 30% in the last seven days. While SOL’s price went up by 30%, ADA, on the other hand, was able to lift its price by more than 12% in the last week. Thanks to this, SOL’s market increased and was also able to overtake ADA to become the 7th largest crypto. At the time of writing, SOL was trading at $27.81 with a market cap of over $11.19 billion. A look at Solana’s daily chart revealed quite a few market indicators that helped the token increase its value.
For example, the Exponential Moving Average (EMA) Ribbon displayed a bullish crossover a few days ago. The MACD’s finding was also similar. During the bull run, SOL’s Relative Strength Index (RSI) went up. However, it was surprising to see its Chaikin Money Flow (CMF) move down while its price increased.
Will Solana keep dominating Cardano?
Though Solana managed to flip ADA, the difference in their market caps was marginal. To be precise, the difference was just nearly 24 million at press time. The nominal difference gave rise to the possibility of ADA reclaiming its spot by overtaking SOL in the days to follow. However, checking ADA’s on-chain metrics, the possibility of ADA flipping SOL in the near term seemed unlikely.
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For instance, ADA’s trading volume has declined sharply. A drop in the metric means that investors were not willing to trade the token. Its MVRV Ratio also ank sharply, which was a bearish signal. However, it was important to note that the whales were still actively trading ADA, as evident from its whale transaction count. Cardano’s velocity also remained high, which was a positive signal.