Solana meme coins explode, time to buy SOL?
On September 26, 2024, Solana-based meme coins received a lot of attention from the crypto community following their impressive performance.
Solana meme coins are bigger than bitcoin and ethereum
According to CoinMarketCap data, SOL-based meme coins such as Dogwiffhat (WIFF), Bonk (BONK), PopCat (POPCAT) and Cat in Dog World (MEW) have increased by 6%, 5.5%, 12% and 15.5% respectively. %, respectively, in the last 24 hours.
However, this significant price increase comes at a time when major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) and others are struggling to gain momentum. It will be more interesting to see if Solana (SOL) follows a similar rally.
SOL current price momentum
At press time, SOL is trading at around $150 and has experienced a price increase of over 2% in the last 24 hours. At the same time, the transaction volume increased by 9 percent, which shows that the participation of traders and investors is growing. However, SOL's rally has been decent, with community expectations rising that it may follow the same strong performance as its associated meme coins.
Solana technical analysis and future levels
According to CoinPedia's technical analysis, when SOL trades above the 200 Exponential Moving Average (EMA) on a daily basis, it indicates bullishness. Additionally, the recent merger crash has changed market sentiment.
Based on the historical price movement, if SOL breaks the previous day's high of $154, there is a possibility that it could rise by 10% to reach the $165 level and even higher if the sentiment remains bearish.
Rise of Solana TVL
However, the Total Value Locked (TVL) on Solana has increased by 3.75% in the last 24 hours, according to Defilama. This increase in TVL indicates that more assets are participating in SOL-based DeFi platforms. In addition, it indicates an increase in demand for blockchain and shows the stability and growth potential of the platform, which can positively reflect the value of SOL.
Bullish on-chain parameters
Solana's view of bullying is further supported by chain measurements. According to on-chain analytics firm Coinglass, SOL's long/short ratio currently stands at 1.8, indicating strong market sentiment among traders over the past four hours.
Currently, 64.28% of top traders hold long positions while 35.72% hold short positions. Given SOL's bullish on-chain metrics, blockchain interests and positive price action, it looks like the bulls may be back in control of the asset.
