Key Points:
- Market Cap Rivalry: Solana and Dogecoin closely matched with minor differences.
- Ranking Swaps: Recent flips in positions as both tokens vie for dominance.
- Metrics Analysis: Examining indicators influencing their price trajectories.
In recent times, the market capitalizations of Solana and Dogecoin have been closely matched, with only a slight variance of a few thousand dollars.
Over the past week, the market caps of Dogecoin (DOGE) and Solana (SOL) have been in proximity, resulting in intermittent exchanges of their rankings. A few days ago, SOL managed to surpass DOGE, taking the position of the eighth-largest cryptocurrency. However, this transient victory was short-lived, as DOGE promptly regained its position. An examination of their metrics and daily charts reveals the underlying reasons for this oscillation.
Neck-and-Neck Battle Between Solana and Dogecoin
Reviewing the market capitalization of both cryptocurrencies indicates that they have swapped positions multiple times in the past week. Despite significant differences in their individual token prices, their market capitalizations have remained closely aligned, separated by a mere few thousand dollars.
At the time of this writing, CoinMarketCap reports Solana’s market cap at $8.828 billion, while Dogecoin’s market cap stands at $9 billion, granting it a slight advantage.
Evaluating the market sentiment surrounding both tokens underscores DOGE’s leadership. This is evident from the decline in SOL’s weighted sentiment, in contrast to DOGE’s sustained high sentiment metric.
DOGE reclaimed its position from Solana on August 18th. Insight from DOGE’s 4-hour chart highlights the factors contributing to this turnaround. During that period, DOGE’s Moving Average Convergence Divergence (MACD) demonstrated a bullish crossover. Additionally, its Money Flow Index (MFI) exhibited a pronounced upswing, contributing to a marginal increase in its value.
Can Solana Surpass DOGE?
While DOGE’s price experienced a more than 1% uptick in the past 24 hours, SOL only managed a modest 0.18% increase. Nonetheless, several metrics favor SOL, hinting at a potential price surge in the upcoming days.
Santiment’s data reveals a notable drop in SOL’s open interest, typically indicative of an impending conclusion to the ongoing price trend. Furthermore, both Solana’s DyDx and Binance funding rates displayed red signals, amplifying the likelihood of a reversal in trend.
However, a closer examination of SOL’s daily chart unveils a bearish outlook. The gap between the 20-day Exponential Moving Average (EMA) and the 55-day EMA is narrowing, potentially signaling an approaching bearish crossover.
The Relative Strength Index (RSI) also rests below the neutral threshold, implying that the odds of SOL surpassing DOGE in the near future are diminished. Nevertheless, the Chaikin Money Flow (CMF) has experienced an upward trajectory, a positive development with bullish implications.”
