Solana Looks Ready to Overtake Cardano's Market Cap
Solana and Cardano are neck to neck in terms of market cap, but SOL could soon take the lead.
Key Takeaways
- Solana looks primed for a possible breakout.
- Meanwhile, Cardano appears bound for a steep correction.
- SOL could overtake ADA by market cap if certain scenarios play out.
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Solana appears to be gearing up for a bullish impulse while Cardano sits on weak support. Data shows that SOL might only need $1 billion in total market value to position itself ahead of ADA in terms of market cap.
Solana Might Flip Cardano
A new “flippening” could be about to happen as Solana appears to be heading north while Cardano looks primed to retrace.
Data from CoinGecko shows that Solana’s market cap is hovering around $62.42 billion. Meanwhile, its counterpart, Cardano, has a total market value of $63.44 billion. As these altcoins are neck to neck in terms of market share rankings for the fifth spot, there is a chance that SOL can flip ADA.
Such market behavior can only happen if Solana is able to gain more than $1 billion in market value while Cardano stays the same or suffers a steep decline. Although it may be too early to tell, given the high correlation coefficient between these cryptocurrencies, technical chart patterns suggest opposite outlooks for both.
For instance, Solana appears to have paused momentarily after breaking out of a symmetrical triangle on its daily chart. Further buying pressure could push SOL to close decisively above its recent all-time high at $219 and re-enter price discovery mode. If this were to happen, the token could go up by another 17% to meet the triangle’s target at $257.
On the other hand, Cardano appears to have broken out of a bear flag that developed on its 12-hour chart. The $1.9 support level is currently preventing this cryptocurrency from realizing its downside potential. Still, a spike in sell orders could push ADA to meet the pattern’s target at around $1.4.
Under such unique circumstances, Solana would be able to flip Cardano and take the fifth spot among the largest cryptocurrencies in the industry by market cap. The potential bullish impulse behind SOL could help it gain more than $10 billion in total market value while ADA drops to roughly $45 billion in market cap.
It is worth noting that this hypothetical scenario will only be valid if Cardano continues trading below the $2.1 resistance level. Overcoming this significant hurdle could invalidate the bearish thesis and lead to further gains. ADA could then rise to $2.28 or $2.58, leaving Solana behind.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
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