Solana vs Ethereum: Technical Indicators Favor ETH in Near-Term Outlook

Solana (SOL) has been gaining attention for its potential to surpass Ethereum (ETH) in market capitalization, according to several market analysts. However, recent technical analysis suggests Ethereum may retain its lead in the short term.

The SOL/ETH trading pair has broken below a key ascending trendline that connected higher lows from September 2023, June 2024, and December 2024, signaling a potential trend reversal. This shift suggests that Ethereum could outperform Solana in the coming weeks. Data from TradingView shows the Moving Average Convergence Divergence (MACD) histogram on the weekly chart turning red, a sign of increasing bearish momentum for Solana relative to Ethereum.

Immediate support for the SOL/ETH ratio is seen at 0.055, which marks the February 25 low. To regain bullish momentum, SOL must move back above the Ichimoku cloud—a key technical resistance level. Until then, Ethereum appears technically stronger.

Meanwhile, XRP has also shown signs of weakening. The token, often used for cross-border payments, has broken down from an ascending channel formed during its recovery from April lows near $1.60. This bearish move now puts the $2 support level at risk. If XRP fails to hold this level, it could decline further to retest the $1.60 region. Conversely, for bulls to regain control, XRP must surpass the recent peak of $2.65.

As the crypto market remains volatile, these technical signals suggest caution for traders eyeing SOL and XRP, with Ethereum currently showing stronger short-term technical resilience.