Solana [SOL], one of the most popular "Ethereum killers", has been one of the best-performing cryptocurrencies on the market over the last few weeks.
This bullishness started after an initial slump to $25 or thereabout.
At the time of writing, SOL has taken back the price levels from before the FTX crash and is trading above $40.
The SOL/ETH ratio (which tracks Solana's performance against Ethereum) has also reached its highest level since August 2022, according to a new report by Kaiko Research.
This indicates that Solana is coming hard and fast for Ethereum, and here's everything you should know:
The SOL/ETH ratio's calculation is fairly simple.
It is what we end up with, we get when we divide the price of SOL by the price of ETH.
In essence, when this SOL/ETH ratio rises, it means that SOL is gaining value relative to Ethereum. And when it declines, it means that ETH is gaining against SOL.
Pretty simple, right?
According to Kaiko in this report, the SOL/ETH ratio has been rising steadily since September 2023.
This metric has risen from about rising from 0.011 to nearly 0.025.
This rally from 0.011 to nearly 0.025 means that SOL has gained ground by more than twice against ETH in the past two months.
Kaiko also noted that the SOL/ETH ratio has also broken past the levels before the collapse of FTX in November 2022.
This means that Solana may have just patched itself up, and corrected any issues FTX brought to it when the exchange went down.
Most of the technical indicators on Solana are currently bullish.
This indicates that the uptrend on Solana may be sustainable, and a $50 SOL may not be out of reach after all.
According to CoinMarketCap at the time of writing, Solana is trading at $43.30.
CoinMarketCap data also shows that Solana is up by about 84.5% over the last month, which is an interesting ROI for any investment.
Solana's ADX (average directional index) also sits at 69.78, indicating that Solana is in a strong uptrend.
In detail, the ADX is a simple metric. It measures the strength of a market trend, indicating whether an asset is neutral (50), in a strong uptrend (> 50), or in a strong downtrend (< 50).
Even better, the MACD and RSI also favour the bulls, despite the RSI showing overbought conditions.
The Open Interest (OI) in Solana has also increased steadily since October 14.
This metric currently sits at about $597 million and is up by over 80% in the past month.
In fact, the OI has been at its highest level since March, according to Coinglass. This indicates that there is a high level of interest and activity in the SOL market.
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.