Solana looks primed for a possible breakout.
Meanwhile, Cardano appears bound for a steep correction.
SOL could overtake ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) by market cap if certain scenarios play out.
Share this article
Solana appears to be gearing up for a bullish impulse while Cardano sits on weak support. Data shows that SOL might only need $1 billion in total market value to position itself ahead of ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) in terms of market cap.
Solana Might Flip Cardano
A new “flippening” could be about to happen as Solana appears to be heading north while Cardano looks primed to retrace.
Data from CoinGecko shows that Solana’s market cap is hovering around $62.42 billion. Meanwhile, its counterpart, Cardano, has a total market value of $63.44 billion. As these altcoins are neck to neck in terms of market share rankings for the fifth spot, there is a chance that SOL can flip ADA ( $0.00 ) .
Such market behavior can only happen if Solana is able to gain more than $1 billion in market value while Cardano stays the same or suffers a steep decline. Although it may be too early to tell, given the high correlation coefficient between these cryptocurrencies, technical chart patterns suggest opposite outlooks for both.
For instance, Solana appears to have paused momentarily after breaking out of a symmetrical triangle on its daily chart. Further buying pressure could push SOL to close decisively above its recent all-time high at $219 and re-enter price discovery mode. If this were to happen, the token could go up by another 17% to meet the triangle’s target at $257.
On the other hand, Cardano appears to have broken out of a bear flag that developed on its 12-hour chart. The $1.9 support level is currently preventing this cryptocurrency from realizing its downside potential. Still, a spike in sell orders could push ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) to meet the pattern’s target at around $1.4.
Under such unique circumstances, Solana would be able to flip Cardano and take the fifth spot among the largest cryptocurrencies in the industry by market cap. The potential bullish impulse behind SOL could help it gain more than $10 billion in total market value while ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) drops to roughly $45 billion in market cap.
It is worth noting that this hypothetical scenario will only be valid if Cardano continues trading below the $2.1 resistance level. Overcoming this significant hurdle could invalidate the bearish thesis and lead to further gains. ADA ( $0.00 ) ( $0.00 ) ( $0.00 ) could then rise to $2.28 or $2.58, leaving Solana behind.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Solana Gaming Platform MonkeyBall Raises $3M from Crypto’s Fines…
Play-to-earn gaming platform MonkeyBall has confirmed the conclusion of its recent funding round, during which it managed to raise over $3 million from a slew of venture and angel investors….
How Decentralized Is Solana?
Solana has gained many new users this summer thanks to its fast transactions and low fees. However, critics have pointed out that the network may not be as decentralized as…
MDEX: Overlooked Decentralized Exchange That Pays You to Trade
Based on statistics from DeBank and dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX—an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain…
Cardano Undervalued Relative to Ethereum ( $2,089.13 ) : Grayscale Report
According to a research report by Grayscale, the world’s largest digital currency asset manager, Cardano could be undervalued given its significant growth in adoption over the last 12 months. Cardano…