Discover the catalysts behind the remarkable surge in Solana's price and the broader implications for the crypto market. Delve into the influx of memecoin frenzy, increased onchain activity, and technical outlook driving SOL's exponential rise. Stay ahead of the crypto game with critical insights and analysis.
Solana price is soaring, marking a 4% surge over the last 24 hours, riding the wave of strength witnessed across the wider cryptocurrency market. The bullish performance of SOL mirrors the 1.6% daily gains of Bitcoin (BTC) as multiple technical and onchain indicators hint at further upward strides. At $173.47, SOL's upward momentum is bolstered by a modest recovery in the crypto market.
The ongoing surge in SOL price can be attributed to sustained demand for Solana tokens within the layer-1 ecosystem, spurred by the memecoin frenzy and Solana SPL token airdrops, particularly prominent in the first half of 2024. This surge in SOL price on Oct. 24 is a reflection of the growth in memecoins within the ecosystem, with many posting double-digit daily gains, as evidenced by Dogwifhat (WIF), Bonk (BONK), Popcat (POPCAT), and Cat in a Dogs World (MEW), among others.
This upward trajectory in memecoin prices is complemented by a surge in onchain activity within the Solana ecosystem. Impressively, the daily transactions on the Solana blockchain surged by 29% between Oct. 8 and Oct. 14. Moreover, an exponential increase in new tokens created on Solana, reaching over 40,000 on Oct. 19, underscores the heightened network activity and increased user interaction. This has led to a substantial rise in network usage, generating higher revenues for the platform.
The increase in Solana's daily revenue, which stood at approximately $2.3 million on Oct. 23, denotes a 70.6% surge from $1.3 million on Oct. 21, indicative of the heightened user interaction and increasing demand for SOL tokens. Furthermore, Solana's total value locked (TVL) has witnessed a significant uptrend in October, rising by 33% from $5.1 billion on Oct. 3 to $6.8 billion, accentuating the growing demand and positive impact on SOL's price.
From a technical standpoint, SOL's price rally above $160 on Oct. 20 saw it break out of an ascending triangle pattern, indicating bullish continuity within an uptrend. Currently trading above the triangle at $174, SOL's relative strength index at 71 suggests an overbought scenario, potentially signaling a pullback in the near term as profit-booking kicks in. The focus now shifts to the triangle's target at $200, presenting a 15% upside from current price levels. Key levels to monitor on the downside include the triangle's horizontal line at $163 and the support zone around $150.
This analysis emphasizes that every investment and trading move carries risk, requiring readers to conduct their own research before making decisions. The surge in SOL's price, fueled by the memecoin frenzy, increased onchain activity, and significant technical breakout, signifies a fascinating turn of events for Solana and the broader cryptocurrency market. Stay informed with critical insights to identify investment opportunities and refine trading strategies.
(Nancy Lubale, Cointelegraph, 2024)