- The SOL/ETH price ratio has been rising since September.
- The demand for SOL remained steady among daily traders.
Solana [SOL] has emerged as a surprise champion in the 2023 altcoin market, outperforming Ethereum [ETH] by a significant margin since early fall.
For the first time since 2021, the SOL/ETH price ratio reversed in early September and has since trended upward.
Source: Kaiko
The SOL/ETH ratio, which measures the value of one SOL coin relative to one ETH coin, has flipped, showcasing Solana’s newfound strength in the past few months.
Further solidifying this trend, Solana-based products have witnessed a surge in inflows, outpacing their Ethereum counterparts in recent times.
According to a recent report from digital assets investment research firm CoinShares, as of the 16th of December, the year-to-date fund flows into Solana products resulted in a net positive of $156 million.
On the other hand, Ethereum’s was just $15 million, with the year marked predominantly by weekly outflows from digital assets backed by the leading altcoin.
SOL remains strong
At press time, SOL exchanged hands at $75.92. With a tremendous price rally recorded in the last two months, its value has risen by over 500% in the last year.
With coin accumulation still going strong, its 50-day simple moving average rested above the 200-day moving average at press time. These lines have been so positioned since October.
This is generally considered as a sign of strength in the market. It is referred to as the golden cross, which occurs when a short-term SMA breaks above a long-term SMA.
Although the general market has seen a slight pullback in coin accumulation, SOL’s selling pressure continues to outpace sell-offs on a daily chart.
At press time, its Relative Strength Index (RSI) was 62.88. Likewise, the coin’s Money Flow Index (MFI) was 69.96. These values showed that SOL traders favored coin accumulation.
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Moreover, the coin’s Chaikin Money Flow (CMF) rested above the zero line as of this writing. Except for a brief decline noted at the end of November and early December, SOL’s CMF has predominantly remained in the positive zone since October.
At 0.05 as of this writing, the SOL market had a steady supply of required liquidity.
Source: SOL/USDT on TradingView