Solana: Are Memecoins Driving SOL’s Price Rally?
Solana (SOL) registered a 13% price pump over the past 24 hours with its daily trading volume rising by close to 50%. This took SOL above the $160 resistance with price trading at $162, as of price time.
Recently, Solana has become the go to blockchain for new memecoins with tokens like $MICHI and $HOBBES achieving meteoric price gains in a few days. This has sparked the interest of retail investors looking to make significant gains, as the general market lull continues.
New Offerings in Solana Ecosystem
A recent tweet by the official X handle for Solana on 15 May revealed that major stock-trading and investment service provider, Robinhood launched their first-ever crypto-staking product, exclusively for users in Europe.
Crypto customers can now stake their Solana holdings directly through the app, allowing them to earn rewards with the flexibility to unstake at any time.
Also, X Marginfi, a decentralized portfolio margin protocol for trading on Solana revealed the Solana's first Liquidity Layer. Marginfi’s Liquidity Layer offers native yields, including natural staking yields and native stablecoin yields.
These recent announcements have coincided with a surge in SOL’s price.
Can Buyers Sustain Bullish Rally?
The break of the $160 resistance level could unleash further gains for buyers. A look at the Chaikin Money Flow (CMF) noted a rapid surge with capital inflows rising to +0.28.
Similarly, the Relative Strength Index (RSI) highlighted the strength of the bullish rally, as it rose sharply from the neutral 50 mark to hit the overbought zone.
As such, buyers can leverage this bullish momentum for short term gains. Profit targets would lie at $175 for 7% gains and $190 for 16% gains. Despite the bullish tendencies, a price rejection at any of the resistance levels ($175 or $191) could keep SOL trading within a compact price range.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.