Solana meme coins have emerged as a driving force behind the increasing on-chain activities on the Solana network. This surge in popularity is expected to lead to a new all-time high for the price of SOL in the near future.
While the cryptocurrency market has been relatively calm recently, with Bitcoin hovering around the $64k mark, there has been a significant outflow of funds from digital asset investment products. CoinShares data shows that $251 million was withdrawn last week, marking the fourth consecutive week of cash outflows.
Altcoin investors have been eagerly awaiting a bullish signal from Bitcoin and Ethereum, and it seems that a reversal in Bitcoin dominance is on the horizon. The ETH/BTC pair has also been retesting multi-year lows, similar to the pre-2021 bull run. As a result, the altcoin market cap has established a support level of around $1 trillion and is expected to reach new all-time highs in the coming months.
Solana, a prominent layer one blockchain, has played a key role in this anticipated altcoin pump. With over $20 billion in bridged total value locked (TVL), Solana has become a major player in the web3 ecosystem. The cryptocurrency has also gained significant institutional investor interest, with over $3.2 billion in stablecoins market cap. Distressed crypto exchange FTX has even conducted SOL auctions to repay its customers.
Crypto analyst Inmortal believes that the SOL price against the US dollar is currently in its final dip before a parabolic rally to a new all-time high. Inmortal suggests that the SOL price has found strong support between $120 and $130. However, in order for the price to continue its upward trajectory, it must overcome the resistance level at $159 and convert the daily 50 Moving Average (MA) into a support level.
Recent market data shows that the SOL price has gained 20 percent in the past week, reaching around $145.68 on May 8, 2024.
As the altcoin market prepares for the price discovery phase, meme coins have shown early signs of bullish divergence. Inmortal predicts that if the SOL price rebounds, other meme coins like FLOKI, DOGE, and PEPE will follow suit. The analyst specifically highlights FLOKI, citing its growing ecosystem and technical indicators. FLOKI’s price has already seen a 16 percent increase in the past week, trading at around $0.000169 at the time of writing.
In summary, the rise of Solana meme coins has driven increased on-chain activities on the Solana network. This, coupled with the anticipated altcoin pump triggered by Bitcoin dominance reversal and the ETH/BTC pair, is expected to push the SOL price to new all-time highs. Altcoin investors are keeping a close eye on SOL and other meme coins, as they show signs of bullish divergence.