Solana Struggles Amidst Bullish Rally for Dogecoin and Ethereum

Some notable cryptocurrencies, like Dogecoin (DOGE) and Ethereum (ETH), have been experiencing bullish momentum, amassing gains of over 21% and 16%, respectively, over the past five days. However, Solana (SOL) has not followed suit, instead dragging behind and decreasing in value. At the time of writing, the price is trading below the lowest price it has had in the past 72 hours.

Dogecoin

Dogecoin‘s recent upward trajectory began towards the end of March, following a period of sideways trading. Notably, before this consolidation phase, the coin had initially hit a high of $0.22, marking its highest price point so far this year. With DOGE surpassing the $0.18 resistance level, technical analysis suggests that the coin could continue to trade higher back to the $0.22 level. Closing at $0.20 yesterday, Dogecoin is approximately less than 10% away from reaching its highest price in 2024.

Ethereum

Ethereum‘s bullish momentum has been equally impressive, as the coin recently closed above $3,600 on Monday. After trading below this level since mid-March and bouncing around it, the recent close above $3,650 could signal that the bulls are ready to take control of the market, potentially propelling the coin towards its all-time high of $4,100.

One of the driving forces behind Ethereum’s price rise, according to a report by Santiment, a leading cryptocurrency analytics platform, is that the network has been gaining significant attention, with topics such as potential growth, network congestion, gas fees, and the approval of the world’s first Ether staking ETF in Canada fueling the discussions.

Solana

While many other major coins have been riding the bullish wave, Solana (SOL) has been dragging behind. After experiencing a bullish rally from the start of 2024 until mid-March, the coin suffered a dip. Although the bulls attempted to regain control towards the latter part of March, they could not sustain the momentum, and the bears took over the market at the beginning of April.

Analysts attribute Solana’s recent struggles to technical issues affecting the coin. Traders are encountering problems with transactions and staking due to high network congestion caused by a surge in activity, leading to delays.

However, despite these challenges, Solana traders remain optimistic about the coin’s future prospects. In an X post, Santiment said:

“In spite of these discussions, there is still a large contingency of supporters of the network who see it as a direct improvement of fees and speed compared to Ethereum’s.”

Similar to this, Ali, an on-chain analyst, revealed that the sentiment regarding the coin is currently low. He stated that it has not been this low since the SOL network experienced an outage on February 6. However, he noted that being optimistic about the coin might eventually pay off.

Crowd sentiment for $SOL hasn't been this low since the #Solana network outage on February 6. Being contrarian now might just pay off! pic.twitter.com/huLZIsafTt

— Ali (@ali_charts) April 6, 2024

As the week progresses, the bullish momentum of Dogecoin and Ethereum may continue, prompting traders and investors to closely monitor potential entry points for these cryptocurrencies. On the other hand, those holding or interested in Solana could await a resolution to the technical issues plaguing the network, with the possibility of a subsequent bullish trajectory.