Following Monday’s market downturn, notable developments emerged, particularly concerning Solana. During the turmoil, SOL reached a new high against Ethereum. On August 7, SOL climbed to $153.8 while Ethereum was valued at $2,516. Both cryptocurrencies saw substantial price hikes after the market’s significant correction.
Why is the SOL/ETH Pairing Important?
According to TradingView data, the SOL/ETH ratio stands at 0.061. This ratio gauges Solana’s value in comparison to Ethereum. A dip in the ratio indicates Ethereum’s better performance, while an increase signifies the opposite. This milestone is noteworthy, as Ethereum hit a yearly low of $2,114 earlier in the week.
SOL’s price also plummeted to $110.23 for the first time in months. However, it rebounded, registering a 30% increase, compared to Ethereum’s 9.68% rise, leading to the current ratio.
What Does the Solana Chart Show?
The daily chart for Solana reveals a wedge formation, offering significant insights for investors since March. The lack of breakouts in support or resistance emphasizes a crucial phase. Recently, Solana’s price broke the EMA 200 average after touching the support line.
The key support level on the daily chart is $146, aligned with the EMA 200 average. A daily close below this could trigger a price drop. The critical resistance level to monitor is $158, corresponding to the EMA 21 average.
Investor Takeaways
– Monitor the SOL/ETH ratio for indication of relative performance.
– Keep an eye on Solana’s support level at $146 and resistance at $158.
– Note the wedge formation on the daily chart for potential future price movements.
In conclusion, Solana’s recent market activity has garnered attention, particularly in its performance against Ethereum. Investors should closely watch the identified support and resistance levels for future price action cues.