Solana (SOL) price is at risk of losing the battle for dominance to Ethereum after the latter recorded a 380% surge in exchange netflows, suggesting that traders may be rotating capital from SOL to ETH. This capital rotation might have a negative impact on Solana and potentially trigger a massive crash.
Solana Price at Risk as Ethereum Inflows Surge 380%
Solana price is at the risk of trending downwards as on-chain data hints that retail traders may be shifting their attention from other altcoins to Ethereum, as the largest altcoin defends the support zone between $1,750 and $1800. This resilience has sparked a 380% surge in ETH exchange netflows in the last 30 days, per IntoTheBlock data, which is an indication that market interest is notably high.
Besides the surge in exchange netflows, large transaction volumes have also spiked by 133%, hinting that whales are also actively trading ETH as the sentiment around this altcoin changes to “mostly bullish.”
Data from Artemis also supports a bearish Solana price prediction and the thesis that the SOL price is losing its competitive edge over Ethereum after the latter ranked with the highest netflows in the last month. During the same period, Solana did not even rank among the top 20 coins in terms of network netflows.
With the on-chain data favouring Ethereum, the Solana price may be on the verge of a massive crash and could soon lose its critical support level. Such a dip could shift the trend in the SOL/ETH ratio that has been on an uptrend for months after Ethereum underperformed against SOL.
What’s Next for SOL – Crash or Rally?
Despite the on-chain data favouring Ethereum and hinting that the price of Solana may crash soon, analysts have shared different views on the future performance. One analyst on X noted that if SOL fails to sustain the support zone between $140 and $145, it may fall to around $115, at which point holders will register losses. Meanwhile, popular analyst Ali Charts stated that the squeezing Bollinger bands on the four-hour chart hint at a parabolic rally for SOL.
The one-day chart appears to support the bearish thesis around SOL value today as the AO histogram bars turn negative, an indication that the bullish momentum is growing weak. If these bars cross below the zero line, it will confirm that a bearish momentum is at play, which may push the SOL price to $138, and if this level also fails, a crash to $100 may be imminent.
The RSI line is tipping south, albeit remaining above 50, an indication that the selling pressure is increasing, and this may push Solana lower if there is inadequate buying pressure. To invalidate the bearish thesis, buyers need to step in to absorb the sold coins and push SOL past $178, as this will spark an uptrend past $195 to $200.
Considering the ongoing capital rotation from other altcoins to Ethereum, the Solana price is at risk of a downtrend and could drop lower and possibly retest levels below $120. The declining RSI and red AO bars further confirm that SOL is at risk of a crash happening in the near term.
The post Is Solana (SOL) Price Crash Brewing? Ethereum 30D Inflows Spike 380% appeared first on CoinGape.