TLDR
- SOL reached its previous short-term target of $180
- Solana meme coins doubled in value over the past month, now worth $14.7 billion
- Total value locked (TVL) in SOL increased by 16.9% since the beginning of the year
- Trading volumes jumped 30% in the past 24 hours as FOMO takes hold
- Market sentiment has shifted from “Extreme Fear” to “Greed” according to the Fear and Greed Index
Solana’s price has hit the $180 mark, fulfilling predictions made just 11 days ago. This surge comes amid a strong comeback from meme coins within its ecosystem, with popular tokens like Pudgy Penguins (PENGU) and Bonk (BONK) playing a major role.
The combined value of Solana meme coins has grown to $14.7 billion in just one month. This represents more than a fifth of the entire meme coin market, according to data from CoinMarketCap.
Exotic tokens like Fartcoin (FARTCOIN) and Popcat (POPCAT) have also contributed to the rally. Their performance has helped push SOL to its current price level.
Celebrity-endorsed tokens such as Official Trump (TRUMP) have helped improve Solana’s on-chain metrics. Network activity has increased with the growing popularity of these tokens.
The ecosystem’s total value locked (TVL) in SOL has grown from 45.15 million at the start of the year to 52.78 million currently. This represents a 16.9% increase.
Rising Trading Activity
Weekly trading volumes have reached their highest levels since mid-February at $22.8 billion. The strong performance of meme coins typically leads to higher trading activity.
Trading volumes for SOL in the past 24 hours have jumped by nearly 30%. This suggests that FOMO (fear of missing out) may be driving investor behavior.
Market sentiment has improved dramatically. The Fear and Greed Index has recovered from a record-low of 15 (Extreme Fear) a month ago to 73 (Greed) today.
This change in market attitude may be linked to recent macroeconomic developments. As the United States economy contracted during the first quarter compared to the previous three months, expectations for interest rate cuts have increased.
The Federal Reserve might choose to prioritize economic growth over inflation control. This potential shift has created a more positive outlook for crypto assets.
Technical Indicators Point Higher
Solana appears ready to deliver what could be a strong buy signal on the daily chart. A bullish crossover between the 21-day and 200-day exponential moving averages (EMAs) may be forming.
The last time this happened, in September 2024, SOL gained more than 70% in just two months. It reached its most recent all-time high only 4 months after this signal.
The price action suggests an upcoming golden cross that could occur once SOL reaches $190-$200. If this happens and historical patterns repeat, SOL could rise to at least $300 in the next 3 months.
Momentum indicators show very strong positive momentum. The Relative Strength Index (RSI) has reached overbought levels, while the MACD histogram has been trending higher for five consecutive days.
Key support areas to watch are the 21-day EMA and the 200-day EMA. As long as these supports hold, Solana will likely reach its short-term target of $212 and potentially its mid-term target of $300.
A pullback toward these moving averages could provide an entry opportunity for investors who missed the initial rally. However, the overbought momentum indicators suggest a correction may occur in the coming days as early investors take profits.
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