Key Takeaways
Solana cleanly broke above $180, rallying 5% on the day and outshining Ethereum. With indicators pointing to a contemporary wave of capital rotation, is a run to $200 subsequent?
A refined however notable divergence is beginning to kind between Solana [SOL] and Ethereum [ETH].
ETH has dominated the upper timeframes, posting almost 2x positive aspects on each weekly and month-to-month candles.
Nonetheless, SOL simply posted a pointy 5.25% each day transfer, breaking via the $185 provide wall and clearing its third key resistance this month.
Extra curiously, the SOL/ETH ratio, which had been in a two-week downtrend, dragging the RSI deep into oversold territory, lastly snapped again with a 2.7% intra-day bounce.
Supply: TradingView (SOL/ETH)
Traditionally, this degree has acted as a strong bounce zone earlier than. Again within the August-November 2024 cycle, the same transfer off this assist noticed SOL outperform ETH by 2.5x, ripping almost 98% from its $129 base.
Now, with ETH approaching the $4k mark, signs of buyer fatigue are beginning to floor. It’s not essentially a breakdown setup, however a cooldown right here might open the door for extra rotation.
If that performs out, might Solana be gearing up for a $200 breakout on the again of a relative power reversal?
Greed takes maintain as Solana reclaims key provide zone
Solana simply cleared a serious on-chain hurdle.
The URPD exhibits a dense realized quantity cluster between $165-$185. Notably, this zone has acted as resistance since mid-Q1, when SOL broke beneath it, trapping many holders underwater.
Nonetheless, with value now reclaiming the vary, most positions are again in revenue. In a bull market, that type of flip provides severe momentum to the breakout as greed begins to kick in.
Supply: Glassnode
Add to that an overextended ETH/BTC ratio, rising indicators of ETH overvaluation, a reversal within the SOL/ETH pair, and SOL breaking via multi-week resistance ranges, and the setup favors relative outperformance.
If this rotation holds, we could possibly be trying on the early levels of a pattern reversal, with $200 for Solana beginning to look extra like a baseline than a stretch goal.