Analyzing if Solana’s position is really under threat from XRP

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  • 73.5% of top Binance traders hold long positions, while 26.5% hold short positions.
  • If SOL doesn’t gain momentum, it could lose its fourth spot to Ripple’s native token, XRP.

As a seasoned crypto investor with a decade of experience under my belt, I find myself intrigued by the current state of Solana [SOL]. The bullish sentiment among traders on Binance and the strong accumulation by whales are certainly encouraging signs, but the bearish technical analysis pattern forming on the four-hour chart is a cause for concern.

Currently, Solana (SOL), the globe’s fourth-biggest digital currency in terms of market capitalization, is holding steady within a narrow trading band and has shown signs of a potentially bearish trend in its price movement.

As a crypto investor, I’ve noticed an impressive surge in the bullish trend of alternatives like Ethereum [ETH] and Ripple [XRP]. This growth has stirred some worry amongst Solana [SOL] holders, causing us to question whether our favorite coin can continue to stand its ground.

As reported by CoinMarketCap, Solana’s market capitalization has remained steady at around $114.4 billion over the past fortnight, even though its price movement has been horizontal. However, during the same timeframe, XRP displayed a significant surge of 80%, causing its market cap to climb up to approximately $106.5 billion.

Strong participation of whales

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According to data from Coinglass, even though Solana’s (SOL) price is currently holding steady within a stable range, there appears to be significant long-term investor enthusiasm towards this digital asset.

According to data from Coinglass, there have been substantial exchange withdrawals amounting to approximately $182.5 million in the digital currency SOL since November 23, 2024.

A significant transfer indicates that both whales and long-term investors are moving these tokens from exchanges into their personal wallets, implying they’re hoarding or accumulating them.

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In the world of cryptocurrencies, people often interpret outflows from exchanges as a favorable indicator, suggesting a possible buying chance and a surge in price movement.

Traders’ recent activity 

Besides long-term investors, traders are equally enthusiastic about the token, according to Coinglass. Currently, the Binance SOLUSDT Long/Short ratio is 2.77, suggesting a high level of optimism among traders about the market’s direction.

Currently, 73.5% of top Binance traders hold long positions, while 26.5% hold short positions.

By blending these blockchain measurements with technical assessment, it seems that the buyers hold the upper hand in the asset market at present, possibly trying to maintain SOL’s position among the top four.

Solana’s technical analysis and key levels

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Based on AMBCrypto’s analysis, it appears that Solana might be shaping up as a potential bearish head-and-shoulder formation on a 4-hour graph. At present, this setup is not yet fully formed since the second ‘shoulder’ is still taking shape.

Should SOL follow through with this pattern and breach its current neckline around $230, there’s a possibility that it might drop down to approximately $200.

If SOL manages to close four consecutive candles above the $245 level, the current bearish view might be disproved, potentially leading to a new high.

Looking ahead, Solana’s Relative Strength Index (RSI) suggests a possible increase in its price in the near future. Currently, its RSI stands at 51, which is lower than the overbought zone, implying that there is potential for further expansion.

Read Solana’s [SOL] Price Prediction 2024–2025

Currently, Solana (SOL) is being traded around $242, marking a decrease of more than 1.25% in its value within the last day.

Over the same timeframe, there was a significant increase of 14.56% in its activity level, suggesting that more traders and investors were actively involved compared to earlier periods.

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2024-12-01 05:11