TLDR
- Solana memecoin trading volume surged 46% in May, reaching $58.7 billion monthly volume as of May 21
- Memecoins now represent 64.6% of all Solana trading volume, up from 56% in April
- Volume growth correlates with Bitcoin breaking $100,000 on May 8, pushing daily memecoin volume to $4.2 billion
- SOL price shows bull flag pattern targeting $260, but needs to break above $180 resistance first
- Trading activity remains below pre-LIBRA scandal levels from February when insider trading damaged investor confidence
Solana memecoin trading activity has experienced strong growth in May, with average daily volume increasing 46% compared to April. The surge comes as Bitcoin’s recovery above $100,000 has sparked renewed interest across cryptocurrency markets.
Monthly trading volume for memecoins on Solana reached $58.7 billion as of May 21. This figure already exceeds April’s total by over $1 billion. The increased activity has pushed memecoins to represent 64.6% of all monthly trading volume on Solana, compared to 56% in April.
The volume spike coincided with Bitcoin breaking the $100,000 threshold on May 8. Daily memecoin trading gradually increased to nearly $4.2 billion, marking the highest daily volume since February 15.
Memecoin sector performance has reflected this volume growth. Over the past month, memecoins ranked as the fifth-best performing crypto sector among 22 categories, rising 59% on average according to Artemis data.
Weekly trading volumes have shown consistent growth since Bitcoin bottomed on April 7. Memecoin weekly trading activity averaged a 16% increase through the week ending May 18.
Between May 12 and May 18, Solana-based memecoins reached nearly $24 billion in weekly volumes. This represents the highest weekly level since February 16.
Technical Analysis Points to Potential Rally
SOL price action has formed a bull flag pattern on daily charts after a strong uptrend. The cryptocurrency currently trades below the key $180 resistance level but shows promising technical signals.
The relative strength index sits at 64.30, indicating healthy momentum without overbought conditions. A clear breakout above $180 could propel SOL toward an initial target of $200, with further upside potential to $220 if momentum continues.
Crypto trader Robert Mercer identified a price fractal pattern similar to October 2024. The analysis highlights two critical zones where SOL broke past $180 after consolidation periods. Mercer predicts a breakout above $180 could trigger a sharp rally mirroring the late 2024 move that saw SOL peak near $260.
My expectations from $SOL once it breaks the $180 resistance
Reminds me of what we’ve seen back in October 2024 pic.twitter.com/6jLddcBCxR
— Robert Mercer (@Robert_Klondike) May 22, 2025
Technical analyst Javon Marks noted a hidden bullish divergence on Solana’s 3-day chart. This pattern previously triggered a 1,332% surge in 2024. Marks suggests a similar breakout in 2025 could push Solana toward a $450 price target.
Volume Concerns and Market Context
Despite the recent growth, trading volumes remain below pre-scandal levels from February. The LIBRA memecoin incident damaged investor confidence when the token crashed 95% after reaching a $4.5 billion market cap.
Argentinian president Javier Milei had endorsed LIBRA on February 14. Two wallets profited over $10 million by buying immediately after the endorsement and selling at the exact peak. This incident sparked rumors of insider activity on Solana token launches.
Declining volumes during the current consolidation phase suggest caution. The lack of buying pressure could potentially stall any breakout attempt above the $180 resistance level.
If SOL fails to breach $180, the next key support area lies between $140-150. This range represents a daily order block that should provide higher time frame support during any price correction.
Popular crypto trader XO remains watchful for long opportunities but suggests waiting to see if Solana can flip the $180 level into support. Weekly volumes show memecoin activity represented 61.5% of all Solana volume in late April, the highest proportion since February 16.
Long scenario Im looking for
Otherwise will look for a setup lower down if it fails https://t.co/LdeGdFvIuP pic.twitter.com/uQb4NccHzV
— XO (@Trader_XO) May 22, 2025
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
