Solana (SOL) Overshadows DOGE, MATIC, XRP in this Metric

Solana SOL VoiceOfCrypto
Solana SOL VoiceOfCrypto

Key Insights

  • Solana is one of the most liquid altcoins on Coinbase. This means that it is easy to buy and sell SOL without affecting its price too much.
  • Solana is more stable than other cryptocurrencies in the current market downturn.
  • A new tokenized version of Bitcoin, called tBTC, is being launched on the Solana network. This could drive the price of SOL up.
  • Solana appears to be in a rebound phase from the $22.39 support level.
  • The technical indicators for Solana are positive, suggesting that the price could continue to rise.

Solana's fundamental and technical indicators have been no joke this year.

After an amazing year in 2021, the cryptocurrency ran into one of the worst flash dips in crypto history during the 2022 bear market.

CoinMarketCap even calculates that SOL went down by more than 90%, from its $260 all-time high in November 2021.

Solana's decline from its ATH
Solana's decline from its ATH

However, in 2023, SOL is beating several other cryptocurrencies in the market and is effortlessly taking the lead as one of the best-performing cryptocurrencies.

In this article, we will go over just how Solana is beating the likes of DOGE, MATIC and XRP in this very important metric, and how possible it is that SOL gets back its shine in the next Bull market.

Solana Emerges As Top Liquid Asset – Kaiko

If you didn't know what Liquidity is, this metric refers to how easy it is for a cryptocurrency to be converted into other forms of currency, without affecting its current price.

A liquid market is one where there are many buyers and sellers, and the prices of the assets do not fluctuate wildly.

According to a recent from tweet Kaiko, SOL has emerged to become one of the most liquid altcoins on Coinbase.

Solana beats DOGE, XRP, and MATIC in liquidity | source: Kaiko/Twitter
Solana beats DOGE, XRP, and MATIC in liquidity | source: Kaiko/Twitter

This is good news for Solana because a highly liquid asset is a highly attractive asset to Investors. And if investors start to pool funds into the cryptocurrency, SOL has a much better chance of rallying further upwards.

According to Kaiko, SOL outperforms other well-known altcoins like DOGE, XRP, and MATIC, and how has over $3 million in liquidity.

Solana Makes Waves Despite General Market Downturn

The general crypto market is in the middle of a massive downturn. Bitcoin lost its footing at $26,000 and is now trading at an 11% loss over the week. 

The same story applies to Ethereum, with a 9% weekly dip below $1,700.

However, Solana appears to be more stable than others. While the cryptocurrency is registering some loss on the weekly timeframe, it is still relatively strong on the daily, with more than a 1% rise over the last 24 hours.

This general decline in the market is due to several issues concerning reports that the SEC may put off its final verdict about granting Bitcoin ETF applications until 2024.

However, there are still several positive pointers including:

New Bitcoin Version To Launch On Solana?

It really is Solana's time to shine. Bitcoin, the most popular cryptocurrency on the planet, has always had limitations.

These limitations have always impacted the price of the cryptocurrency, and have been hindrances in one way or another, to Bitcoin's widespread adoption.

However, according to this announcement tweet, the Threshold Network, with support from Threshold DAO, has created tBTC.

What is tBTC, you ask?

tBTC is the first tokenized version of Bitcoin. And this new development is dragging Bitcoin by the horns, all the way into SOL.

Tokenization refers to representing an asset like Gold, real estate (or in this case, Bitcoin) by another asset. Basically, new digital tokens that represent Bitcoin will be launched on the Solana network.

Similar to how wrapped BTC (wBTC) on Ethereum works, tBTC will allow users to spend Bitcoin on DeFi platforms, via the SOL network.

This is bound to create more use cases for Solana, which will in turn drive its price.

Breath Of Fresh Air On Solana

SOL appears to be in a rebound phase from the $20 zone as illustrated below.

Solana's price action
Solana's price action

The two candlesticks in contact with the lower trendline as illustrated above, have long lower wicks. This indicates strong price rejection and validates this zone as strong support.

If this is true and SOL has nowhere else to go but up, the cryptocurrency may be poised to gain another 10% as it rallies to retest the $25.55 zone from where it currently sits.

Solana's price action
Solana's price action

The RSI also shows an impending crossover between the signal line and MACD, indicating that SOL has some pretty strong technical indicators.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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