Solana meme coins have played a significant role in boosting on-chain activities on the layer one network. This surge in popularity is expected to contribute to an altseason, where Bitcoin dominance reverses and the ETH/BTC pair triggers a rise in the price of SOL, pushing it to a new all-time high.
In recent weeks, the cryptocurrency market has experienced relative stability, with Bitcoin’s price hovering around the $64k mark. However, CoinShares data shows that digital asset investment products saw a total outflow of $251 million last week, marking the fourth consecutive week of cash outflows.
The altcoin market has been eagerly awaiting a bullish signal from Bitcoin and Ethereum. Bitcoin’s dominance is expected to reverse in the near future, while the ETH/BTC pair has been retesting multi-year lows, reminiscent of the pre-2021 bull run. This has led to the establishment of a support level of around $1 trillion for the altcoin market cap, which is likely to double and reach an all-time high in the coming months.
Solana, a prominent layer one blockchain, has become a major player in the web3 ecosystem. With over $20 billion in bridged total value locked (TVL) and its smartphone Saga mobile, Solana has attracted significant attention. The altcoin, with a fully diluted valuation of over $83 billion, has also gained traction among institutional investors, resulting in over $3.2 billion in stablecoin market cap. Distressed crypto exchange FTX has conducted SOL auctions to repay its customers, further boosting its prominence.
According to crypto analyst Inmortal, the SOL price against the US dollar is currently experiencing its final dip before a parabolic rally to a new all-time high. Inmortal believes that the SOL price has established a strong support range between $120 and $130. However, to achieve this rally, the SOL price needs to surpass the resistance level around $159 and convert the daily 50 Moving Average (MA) into a support level. Failure to do so may lead to a retest of the support level around $127 before a bullish rebound towards its ATH.
Recent market data shows that the SOL price has gained 20 percent in the past week, trading at around $145.68 on May 8, 2024.
As the altcoin market cap prepares for the price discovery phase in the coming quarters, meme coins have shown early signs of bullish divergence. Inmortal suggests that if the SOL price rebounds in the coming weeks, other meme coins such as FLOKI, DOGE, and PEPE are likely to follow suit. FLOKI, in particular, has gained over 16 percent in the past week, trading at around $0.000169.
Overall, the rise of Solana meme coins and the anticipated altseason indicate a promising future for the cryptocurrency market. Investors and traders are closely monitoring the developments and preparing for potential gains.