Journalist
Posted:
- The SOL/ETH price ratio has been rising since September.
- Demand for SOL remained steady among daily traders.
Solana [SOL] has emerged as a surprise champion of the 2023 altcoin market, outperforming Ethereum [ETH] by a significant margin since the beginning of autumn.
For the first time since 2021, the SOL/ETH price ratio reversed in early September and has been on an upward trend since then.
Source: Kaiko
The SOL/ETH ratio, which measures the value of one SOL coin versus one ETH coin, has been reversed, demonstrating Solana’s newfound strength in recent months.
This trend is further amplified as Solana-based products have witnessed strong inflows, surpassing their Ethereum counterparts in recent times.
According to a recent report from digital asset investment research firm CoinShares, as of December 16, year-to-date fund flows into Solana products resulted in a net positive amount of $156 million.
On the other hand, Ethereum’s was just $15 million, with the year mainly characterized by weekly outflows from digital assets backed by the leading altcoin.
SOL remains strong
At the time of writing, SOL was exchanging hands at $75.92. With a huge price increase in the last two months, its value has increased by more than 500% in the past year.
With coin accumulation still strong, the 50-day simple moving average was above the 200-day moving average at the time of writing. These lines have been positioned this way since October.
This is widely regarded as a sign of strength in the market. It is called the golden cross, which occurs when a short-term SMA breaks above a long-term SMA.
Although the general market has seen a slight pullback in coin accumulation, SOL’s selling pressure remains greater than the sell-off on the daily chart.
At the time of writing, the Relative Strength Index (RSI) stood at 62.88. Similarly, the coin’s Money Flow Index (MFI) was 69.96. These values showed that SOL traders favored coin accumulation.
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Furthermore, the coin’s Chaikin Money Flow (CMF) was above the zero line at the time of writing. Aside from a brief dip in late November and early December, SOL’s CMF has remained mostly in the positive zone since October.
At the time of writing, the SOL market was provided with a steady supply of required liquidity at 0.05.
Source: SOL/USDT on TradingView