This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
Programmable blockchain Solana is on course to flip its rival and leading smart contract blockchain Ethereum in terms of market capitalization, several observers have noted in recent months.
However, for now, Ethereum’s native token ether (ETH) seems to maintain an upper hand over Solana’s (SOL), according to technical analysis.
The SOL/ETH ratio has dived out of an upward sloping trendline connecting lows from September 2023, June 2024, and December 2024, according to data sourced from TradingView. In other words, the tables have turned in ETH’s favor, suggesting that the token could outperform SOL in the near-term.
Furthermore, the weekly chart MACD histogram is currently printing red, indicating a strengthening of the downside momentum for SOL. Immediate support is noted at 0.055 (the February 25 low). The pair needs to ascend back above the Ichimoku cloud to negate the bearish outlook for SOL.
XRP Loses Uptrend
Another cryptocurrency showing a shift in market trend is XRP, designed primarily for cross-border payments.
XRP has recently fallen out of a bullish ascending channel, marking a significant recovery from early April lows near $1.6.
This breakdown has exposed a support level at $2, which has acted as a floor several times earlier this year. Should buyers fail to defend this level, a deeper slide toward $1.60 may materialize.
On the bullish side, the recent high of $2.65 is the critical level for the bulls to overcome.
