- Dogecoin recently overtook Solana, reclaiming its position as the 8th largest cryptocurrency.
- While some metrics suggest bullishness for Solana, its broader market indicators seem bearish.
A Tight Race in the Crypto Realm
In the captivating crypto marathon, the past week has been especially riveting for followers of Solana (SOL) and Dogecoin (DOGE). Their market capitalizations have been so tightly aligned that both tokens managed to outpace each other several times. Solana’s triumphant moment came when it surpassed DOGE, positioning itself as the eighth biggest cryptocurrency. However, this victory was short-lived as Dogecoin promptly bounced back.
This oscillation can be attributed to the nuanced metrics and daily trends driving both these digital currencies. While there might be a stark disparity in their individual prices, their market caps remain closely competitive. Current data from CoinMarketCap indicates that Solana boasts a market cap of $8.828 billion, whereas Dogecoin slightly edges it out with a cap of $9 billion.
Market Sentiments Weigh In
The collective sentiment in the market offers significant insights. For Dogecoin, the prevailing mood seems largely positive, a fact underscored by its enduring high weighted sentiment. Solana, on the contrary, has seen its sentiment diminish.
Dogecoin’s recent outpacing of Solana on August 18th can be contextualized with the 4-hour chart of the “memecoin”. During this period, Dogecoin’s MACD (Moving Average Convergence Divergence) indicated a bullish turn. Concurrently, its Money Flow Index (MFI) witnessed a pronounced surge, catalyzing a modest ascent in its value.
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Solana’s Prospects: A Mixed Bag
Recent market activities showed Dogecoin’s price appreciating by over 1% within a day, while Solana made a modest push, rising by just 0.18%. Some market indicators for SOL seem optimistic, hinting at potential upward price movement. Santiment’s data revealed a considerable drop in Solana’s open interest. Traditionally, such a decrease signifies an imminent end to the prevailing price trend. Coupled with bearish funding rates from platforms like DyDx and Binance, Solana might be gearing up for a trend shift.
Nevertheless, caution is advised for Solana enthusiasts. The coin’s daily chart evokes a slightly bearish narrative. The narrowing gap between its 20-day Exponential Moving Average (EMA) and the 55-day EMA suggests a potential bearish crossover. Furthermore, its Relative Strength Index (RSI) is hovering below the neutral threshold, which dampens its prospects of overtaking Dogecoin in the immediate future. However, a silver lining emerges as the Chaikin Money Flow (CMF) displays a bullish increment.
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