Assessing The Possibilities of Solana (SOL) Being the New Cardano (ADA)
You probably recall the golden days when Solana was a leading blockchain, promising to accomplish the ‘Ethereum killer’ narrative. That was when Solana dominated headlines as among the fastest-growing digital coins. Nevertheless, times changed, and Solana lost its glory, lately performing more like ADA.
Solana presented a somewhat attractive rally in 2021 Q1 as its ecosystem cheered massive adoption and growth. The progress was robust enough to back Solana’s uptrend even when the entire crypto space witnessed a bloodbath.
Unfortunately, SOL has encountered several challenges since then, with several technical issues blocking its gloss while casting doubt on its community.
The mentioned facets plus a bear market saw SOL price action enduring rough sessions. The altcoin retrained bearish tendencies since hitting the November 2021 highs, thus similarities with Cardano, another digital coin that has seen heavy bearishness.
Solana climbed to $45 (at this publication), resurging from its weekly lows at $40.33. That was a slight uptick relative to what its competitor gained from the weekend surge. That confirms Solana’s sluggish upside, scenarios that dominated within the past couple of months.
The brief price surge over the previous weekend saw the Relative Strength Index bouncing back beyond the oversold territory. The Money Flow Index recorded some accumulation that matched the feeble action by bulls. The MFI shows Solana lacks directional momentum.
Will Solana Shine Once More?
Solana’s latest events might have dimmed the alt’s spark as SOL has had brighter days. Nevertheless, some on-chain metrics suggest the storm could be over. For instance, the whale supply index recorded outpours in April & May’s first two weeks.
Nevertheless, the metric appeared to have bottom between May 19 and May 23 before recording significant outflows.
Nevertheless, the accumulation of Whales couldn’t yield significant uptrends. That shows retail sell-offs erased most accumulation. Supply by whales saw some outflows on May 29 and 30, explaining price failure to attain a substantial surge. Moreover, Solana’s market capitalization witnessed brief outflows at the same timeframe.
Meanwhile, supply dynamics visibly influenced Solana’s price movement during the weekend. Nevertheless, the altcoin is improving gradually and will likely regain investor favor in the coming future. Accumulation around lower price zones signals healthy investor interest levels for Solana.