Earlier this week, SOL saw its value falling below the $141 level to nearly $138. The uptick came less than 24 hours after the bears seemed to have lost their grip on the coin, with the bulls gaining traction.
Solana (SOL) has seen its value drop significantly in the last 24 hours, even as activities on the ecosystem surge thanks to meme coins. The digital asset tanked nearly 6% with its market cap dropping to as low as $63.83 billion.
Meme Coins on the Rise
Meme coins like Book of Meme (BOME) saw its open interest surge to a new height of 10% this week after a four-month low. Another meme coin known as Mog Coin (MOG) also witnessed a more than 20% increase on Thursday.
The token also saw its trading activities spike up as well. As of July 11, the trading volume of MOG stood close to $36 million, making it a 15% increase from the previous day. In addition to both BOME and MOG, another meme coin known as WATER surged 350% in a single day after popular football legend Lionel Messi promoted the token on Instagram. WATER rose from its price of $0.00032 to $0.00146 within two hours after the Instagram post.
However, despite the surge of meme coins on the Solana ecosystem, SOL itself has not had a good week as the digital asset continues to dip alongside Bitcoin (BTC) and Ethereum (ETH).
Earlier this week, SOL saw its value falling below the $141 level to nearly $138. The uptick came less than 24 hours after the bears seemed to have lost their grip on the coin, with the bulls gaining traction.
During this period, SOL recovered above the 20-day EMA which was marked as $141. According to reports, the SOL has the potential to climb to the 50-day SMA ($151), where strong resistance from sellers is anticipated. If the price retreats from this level, the bears will likely target a drop to $116.
Solana (SOL) Market Sentiment and Future Outlook
However, if the price breaks and closes above the 50-day SMA, it would indicate robust demand at higher price points. In this scenario, the digital asset could advance towards the downtrend line. For the descending triangle pattern to be invalidated, buyers would need to push the price beyond this downtrend line.
Meanwhile, the market sentiment surrounding SOL remains mixed. While the rise in meme coin activity within its ecosystem demonstrates a thriving community and increasing user engagement, the overall bearish trend in SOL’s price reflects broader market challenges.
Investors are closely monitoring the regulatory landscape and macroeconomic factors that could influence the trajectory of digital assets like SOL.
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