Massive Solana Price Increase Threatens XRP Market Cap
The price surge of Solana (SOL) in 2023 has brought it close to overtaking XRP as the fourth largest cryptocurrency by market cap. Currently, Solana’s market cap stands at $32.9 billion, just slightly below XRP’s $33.1 billion. If SOL surpasses XRP, it could potentially move towards BNB, which has a market cap of $39 billion.
BNB Bounces From Range Low
BNB has been trading within a horizontal range since the beginning of 2022. Although the price has fluctuated above and below this range multiple times, it has failed to sustain any significant movement and has fallen back within the range. However, BNB recently fell below the range low in October but quickly reclaimed it and has since seen an increase in price. This upward movement resulted in the reclaiming of the range low at $215, and BNB is now trading within an intermediate resistance area.
Rising RSI Indicates Bullish Momentum
The Relative Strength Index (RSI) is a momentum indicator used by traders to determine whether a market is overbought or oversold, helping them decide whether to buy or sell an asset. When the RSI reading is above 50 and trending upward, it suggests that bulls still have an advantage. In the case of BNB, the weekly RSI has increased since its low point and is currently above 50, signaling a bullish trend.
BNB Price Potential: Upward Movement or Rejection?
If the price of BNB continues to rise, it could reach the range high of $350, resulting in a 35% upward movement from its current price. However, there is a possibility of a 15% drop to the range low of $215 if the price is rejected at the minor resistance level of $260.
XRP’s Bullish Momentum and Potential Resistance
The weekly RSI for XRP also indicates a bullish trend, as it is above 50 and increasing. If this upward movement continues, XRP has the potential to increase by another 40% and reach the next resistance level at $0.85.
Cautionary Note for XRP: Support Trend Line and Potential Drop
However, if XRP closes below the horizontal area of $0.60, it could invalidate the breakout and lead to a potential 30% drop to the ascending support trend line at $0.43.
Hot Take: SOL’s Surge Threatens XRP’s Market Cap
Solana’s impressive price increase in 2023 puts it in a position to challenge XRP’s market cap. With SOL closing in on XRP’s market cap, it could potentially move up in the rankings and surpass other cryptocurrencies like BNB. Meanwhile, BNB has shown resilience by bouncing back from its range low and is currently trading within an intermediate resistance area. Both BNB and XRP have seen bullish signs with their RSI readings above 50, indicating positive momentum. However, caution should be exercised as both cryptocurrencies face potential resistance levels that could trigger price reversals.
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