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Solana (SOL) has gone up by 2.6% in the past 24 hours as trading volumes have surged by 43% during this period.
Meme coins within this blockchain’s ecosystem have been rallying in the past few days. Tokens like Fartcoin (FARTCOIN) and Pudgy Penguins (PENGU) have booked 7-day gains of 28% and 12.5% respectively.
As the utility token of this network, the demand for SOL is influenced by higher transaction volumes. Meme coins are an important part of this ecosystem as they are responsible for a large percentage of DEX trading volumes.
During peak usage periods, decentralized protocols like Raydium (RAY), Orca (ORCA), and Jupiter (JUP) tend to perform quite well.
Despite this latest positive performance, on-chain data shows that trading activity has cooled off in the past few weeks.
Data from DeFi Llama indicates that stablecoin balances within the Solana blockchain have dropped from around $13 billion at the beginning of May to $11 billion at the time of writing – a 15.4% decline in just a month or so.
Meanwhile, weekly DEX volumes reached a local peak at $29.2 billion and have declined by nearly 50% as they closed last week at $15 billion.
Can meme coins come back with enough strength to reverse this downtrend in Solana’s key on-chain metrics?
SOL Finds Support at $140 and Rises Above Key EMAs
Solana seems to have found strong support at $140 during this latest pullback. The daily chart indicates a strong bounce off this level at a point when the Relative Strength Index (RSI) was approaching the oversold area.
This oscillator has now sent a buy signal as it crossed above the 14-day moving average. In addition, the price has now surged above both its short-term and long-term exponential moving averages (EMAs).
The $155 level seems to be the key level to watch in case of a short-term drop. A bounce off this level would confirm a retest of a former support and will favor a push to the nearest resistance at $185.
Solana has struggled multiple times on prior occasions to break above this level. However, as bullish momentum seems to be regaining steam, the odds favor an upcoming bullish breakout that could push the token back to $200 in the near term.
This bullish outlook would be confirmed if the short-term EMAs cross above the 200-day EMA. This is a powerful buy signal known as a ‘golden cross’. When it occurs in the daily chart, it usually anticipates big gains.
As meme coins and DeFi applications within Solana keep expanding, the network needs a robust infrastructure to keep up with rising transaction volumes.
Solaxy (SOLX), one of the hottest crypto presales of the year, will launch its layer-2 scaling solution this month and its presale event will end in just 5 days. This is your chance to invest in one of the most promising projects of the Solana ecosystem at a heavily discounted price.
Solaxy (SOLX) Raises More Than $47M to Launch Its L2
Solaxy (SOLX) is a scaling solution conceived to eliminate the congestion issues that have affected the performance of the Solana blockchain in the past.
This L2 bundles transactions offline in its side chain before sending them to the mainnet to alleviate the latter’s burden.
The protocol’s mainnet will be launched this month and the presale event will end in just 5 days. Once Solaxy is adopted by top wallets and exchanges, the demand for its utility token $SOLX will skyrocket.
In addition, token holders can lock up their $SOLX to earn attractive staking rewards. The project currently offers an APY of 86%.
To buy $SOLX at its discounted presale price, head to the Solaxy website and connect your wallet. You can either swap USDT or SOL for this token or use a bank card to invest.
