Solana (SOL) may have finally lived up to its moniker as the “ETH killer,” as it has significantly outpaced Ethereum (ETH) since the beginning of fall, becoming one of the most notable altcoins in the 2023 market.
Current SOL/ETH Ratios
SOL/ETH price ratio has turned in favor of SOL for the first time since 2021 as of September, and the gap between the two altcoins continues to widen. The SOL/ETH ratio, which measures SOL’s value against ETH, has reversed, highlighting Solana’s rise over the past few months.
The strengthening trend is supported by Solana-based altcoins, which have recently overtaken their Ethereum-based competitors, leading to an increase in inflows. According to a recent report by the renowned firm CoinShares, as of December 16, Solana and its related altcoins have seen a positive fund flow of $156 million since the beginning of the year, compared to only $15 million for Ethereum.
Current State of SOL
As of this writing, the price of SOL has increased by 6%, trading at $87. Following an incredible value increase over the past two months, SOL’s value has surged over 500% in the last year.
The accumulation in the cryptocurrency continues to be strong. The 50-day simple moving average was above the 200-day moving average at the time of writing. More importantly, these lines have continued to move in the same manner since October.
Market analysts consider such conditions as a sign of a strong structure. The situation where a short-term SMA crosses above a long-term SMA is also referred to as a golden cross. Even though there is a slight decline in crypto accumulation in the general market, the selling pressure on SOL continues to be outweighed by buying on the daily chart.
As of this writing, the Relative Strength Index (RSI) was at 62.88. Similarly, the coin’s Money Flow Index (MFI) was 69.96. These values indicate that SOL traders prefer accumulating over selling.
Furthermore, the cryptocurrency’s Chaikin Money Flow (CMF) was above the zero line at the time of this article. Except for a brief dip at the end of November and beginning of December, SOL’s CMF has generally maintained its presence in the positive region since October.
