Solana has been one of the most sustainably bullish cryptocurrencies since October. But its bullish story began farther back than October.
At the start of the year, Solana traded at a meagre $10.23. Solana traded in a range between $28 and $10 for most of the year, up until late October when things changed drastically.
Within a span of three months, Solana has rallied by about 440% and has flipped about four cryptocurrencies on its way to being ranked the 4th largest cryptocurrency by market cap.
Is BNB the next in line? Let's find out.
BNB has held the sport as one of the largest cryptocurrencies on the market by market cap.
However, the cryptocurrency has been sluggish so far, in terms of price. According to CoinMarketCap, the cryptocurrency has only gone up by about 8% this year, making it one of the worst-performing cryptocurrencies this year among the top 50.
Solana, on the other hand, was trading at around $70 around the end of last week. On Thursday this week, however, the cryptocurrency rallied straight up to the $100 mark and is currently consolidating from here.
This stellar rally from $70 caused Solana to flip XRP only a few days ago. And today, Solana also flipped BNB to become the fourth-largest cryptocurrency by market cap.
This "flippening" was short-lived though. According to CoinMarketCap, this decline from $100 has cost Solana its ranking as the fourth largest.
The rankings are close though. BNB currently has a market cap of about $40.8 billion, while Solana has a market cap of about $39.1 billion.
If we see Solana break through $100 once again, the floor might be open for a direct confrontation between Solana and Ethereum, sometime in the future.
An ETH/SOL "flippening", if you will.
Over the last 24 hours, Solana's Defi TVL has risen by about 11% from $1.2 billion to $1.36 billion at the time of writing.
Some of SOlana's largest Defi protocols have also shot up over every timeframe, with some like Goose Finance rising by 135% over the last day, and by 219,930% over the last month.
BonkSwap, the parent Dapp of the wildly popular BONK memecoin, is also up by about 500% over the last month, along with others like Parci with a 158,994% monthly increase.
At the time of writing, Solana is up by about 7.9% over the last day, and by about 17% over the last week.
We can see Solana's unhindered rally illustrated in the chart below:
According to the chart above, the bears appear to be active around the $100 zone. This makes sense, because the $100 zone is an important psychological resistance, and most investors would consider taking profits around this zone.
The RSI has also recently crossed over the overbought zone, indicating that the bulls are in charge, but may be undermined by the selling pressure.
Coinglass data supports this narrative with the long/short ratio. This metric shows that the sellers outnumber the buyers, 50.92% to 49.08%.
The best bet at this point, is to wait for the current Solana pullback to run its course, before jumping in.
A Solana long trade should only be entered if Solana successfully clears the $120 zone again.
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