The aftermath of Monday’s market collapse has ushered in interesting things; this time, Solana (SOL) is at the forefront. Specifically, SOL price has hit a new all-time high against Ethereum (ETH).
In the early hours of Today, August 7, SOL jumped to $153.81. ETH, on the other hand, traded at $2,516. Both prices notably increased after the broader market faced an infamous correction earlier.
The Solana Over Ethereum Flippening Has Come to Pass
According to TradingView, the SOL/ETH ratio is 0.061. This ratio measures the value of one Solana token to the value of one Ether. If the ratio falls, it means that ETH’s price is performing better than SOL.
However, an increase implies otherwise, as is the case at press time. The reason for this milestone could be linked to their respective prices. Earlier in the week, ETH reached a yearly low of $2,114.
SOL price also dropped as low as $110.23 for the first time in many months. But since then, SOL has notched more than a 30% increase, while ETH has only managed a 9.68% jump, leading to the milestone shown below.
Read more: Solana vs. Ethereum: An Ultimate Comparison
This repricing, as many market participants would like to call it, may not surprise some. On several occasions, traders have opined that SOL would flip ETH regarding market cap. While that has not happened, the rising price is a sign that it is not impossible.
For instance, pseudonymous analyst Crypto Kaleo opines that SOL’s price could continue to hit higher values against Ethereum.
“Solana is about to enter price discovery in terms of its price vs Ethereum,” the analyst shared.
Following the development, Open Interest in Solana has been skyrocketing. At press time, Santiment data shows that the value is close to $2 billion.
The hike in Open Interest could be linked to the SOL price recovery and indicates that traders are increasingly getting involved in speculative activity related to the asset.
Should the OI continue to jump, then SOL price may follow in a similar direction. If this is the case, then reclaiming $160 may not be a difficult mission for the token. This is because increasing money allocated to contracts alongside a rising price strengthens the uptrend.
SOL Price Prediction: Bullish Trend Confirmed
According to the daily chart, SOL may have produced a breakout alert after the price reaction to the previous crash. This is evident from the formation of a V-shaped technical pattern.
Also known as a V bottom, this pattern appears when prices quickly reverse during a downtrend, resulting in a temporarily aggressive, sharp upward movement. As seen below, the SOL price seems to be towing that path.
Apart from that, the price is approaching the crest of the 20-day EMA (blue). EMA stands for Exponential Moving Average and helps to spot trend direction. If SOL’s price crosses above the 20 EMA, then the bullish thesis will be validated.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
Once that happens, the cryptocurrency’s price could hit $161.88. If successful, this could drive the Solana native token to $175.95.
However, this prediction will be invalidated if Solana experiences a drop in Open Interest as well as a rise in selling pressure. Should this be the case, SOL price may decrease to $142.10.
Disclaimer
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