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Key Takeaways:
- Solana’s recent 5.25% daily gain and breakout of the $185 supply zone signal growing bullish momentum.
- The SOL/ETH ratio’s rebound from oversold levels hints at a possible shift in dominance favoring Solana.
- On-chain data confirms a strong support flip and increasing investor confidence, positioning SOL for a potential $200 breakout.
A subtle but significant divergence is developing between Solana (SOL) and Ethereum (ETH) as the latter dominates higher timeframes with nearly 2x gains on weekly and monthly charts. While ETH inches toward the $4,000 level, Solana has gained momentum with a sharp 5.25% daily price surge, breaking through a key $185 resistance zone. This move marks Solana’s third major resistance breakthrough this month, hinting at a potential trend shift favoring SOL.
SOL/ETH Ratio Rebounds After Two-Week Downtrend
The SOL/ETH ratio, which had been declining for two weeks and pushing its Relative Strength Index (RSI) deep into oversold territory, has snapped back with a notable 2.7% intraday bounce. Historically, this level has served as a strong bounce zone. During the August-November 2024 cycle, a similar rebound from this support resulted in SOL outperforming ETH by 2.5x — soaring nearly 98% from a $129 base. If history repeats, Solana could be on the brink of a sustained rally that outpaces Ethereum.
On-Chain Data Confirms Solana’s Growing Momentum
Solana’s recent breakout coincides with reclaiming a dense realized volume cluster between $165-$185, identified by the Unrealized Profit and Loss Distribution (URPD) indicator. This zone acted as a major supply barrier since mid-Q1 2025, trapping many investors underwater when SOL fell below it. Now that prices have reclaimed this area, most holders are back in profit, often a bullish signal that fuels further buying as market greed intensifies.
Meanwhile, signs of Ethereum buyer fatigue and an overextended ETH/BTC ratio add credence to the idea of a potential rotation from ETH to SOL. The combination of a reversal in the SOL/ETH pair and Solana breaking multi-week resistance suggests the crypto market may be entering a phase where SOL outperforms.
Is Solana Ready for a $200 Breakout?
With multiple technical and on-chain indicators pointing toward relative strength, Solana’s price is eyeing the $200 mark — a level that could shift from an ambitious target to a new baseline. While Ethereum’s dominance remains intact, signs of cooling momentum open the door for altcoins like Solana to capture market attention.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
Also Read: How to Stake Solana in 2025: Complete Beginner’s Guide to Earning Income with SOL
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
