The price of Solana has shown significant growth, surpassing the important resistance level of $150. This is linked to the increasing market capitalization of meme coins within its ecosystem.
Rise of Solana Price
On Saturday, Solana (SOL) price reached $153, marking its highest level since March 3 and 60% above this year's lowest level. This surge has pushed its market cap to nearly $80 billion.
Influence of Meme Coins
The recovery of Solana coincided with the return of investors to meme coins in its ecosystem, boosting their capitalization to $10 billion. Popular meme coins, such as Official Trump, Bonk, Dogwifhat, and Pudgy Penguins, surged over 60% in the last week. Three of these meme coins—TRUMP, Bonk, and Fartcoin—have accumulated a market cap of over $1 billion.
Technical Analysis of Solana Price
The daily chart indicates that SOL price bottomed at $95.27 earlier this month, followed by a rebound. It has moved above the key resistance level at $121.17, forming an inverse head and shoulders pattern, a bullish sign. The price has also crossed above the 50-day moving average, with indicators like the Relative Strength Index and MACD continuing to rise. The price may continue to rise, targeting the psychological level of $200.
The rise in Solana's price, driven by increased market capitalization of meme coins and positive technical indicators, has caught investors' attention. This trend may lead to further long-term gains.
