Solana Meme Coins Explode, Time to Buy SOL?

On September 26, 2024, Solana-based meme coins gained significant attention from the crypto community following their impressive performance.

Solana Meme Coins Outperform Bitcoin and Ethereum

According to CoinMarketCap data, SOL-based meme coins such as Dogwifhat (WIF), Bonk (BONK), Popcat (POPCAT), and Cat in a Dogs World (MEW) have surged by 6%, 5.5%, 12%, and 15.5%, respectively, over the last 24 hours.

However, this significant price surge occurred during a period when major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and others were struggling to gain momentum. It will be more interesting to see whether Solana (SOL) follows the same rally.

SOL Current Price Momentum

At press time, SOL is trading near $150 and has experienced a price surge of over 2% in the past 24 hours. During the same period, its trading volume jumped by 9%, indicating growing participation from traders and investors. However, SOL’s rally has been decent, community expectations are rising that it could follow the same strong performance as its associated meme coins.

Solana Technical Analysis and Upcoming Levels

According to CoinPedia’s technical analysis, SOL appears bullish as it trades above the 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend. Additionally, its recent consolidation breakout has shifted the market sentiment.

Source: Trading View

Based on historical price momentum, if SOL breaches its previous day’s high of $154, there is a strong possibility that it could soar by 10% to reach the $165 level and even higher if the sentiment remains bullish.

Rise of Solana TVL

However, the Total Value Locked (TVL) on Solana has increased by 3.75% in the past 24 hours, according to Defillama. This increase in TVL indicates that more assets are being staked into SOL-based DeFi platforms. Additionally, it suggests rising demand for the blockchain and signals platform stability and growth potential, which could positively reflect on the SOL price.

Bullish On-chain Metrics

Solana’s bullish outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SOL’s Long/Short ratio currently stands at 1.8, indicating extreme bullish market sentiment among traders in the past four hours.

Source: Coinglass

Currently, 64.28% of top traders hold long positions, while 35.72% hold short positions. Considering SOL’s bullish on-chain metrics, its blockchain demands, and positive price actions, it appears that the bulls are back and potentially dominating the asset.