This week, Solana has emerged as the best-performing asset in the top 10 crypto market ranking. As the GameStop saga resurfaced, triggering a surge in meme coin demand, investors swooped in to scoop up prominent Solana-hosted memes like Dogwifhat (WIF) and BONK. This surge in native memecoin demand has inadvertently increased SOL demand.
Solana’s price has surged 22% since the GameStop rally broke out on May 14. At the time of writing on May 17, Solana is exchanging hands for $168.9, reflecting a 44% uptick for the month. However, a closer look at the WIF (39.5%) and BONK (+26%) daily price charts shows that Solana’s top 2 largest meme projects have also scored significant double-digit gains in May 2024.
Technical Indicators Paint a Bullish Picture
Several technical indicators on the daily chart support the bullish narrative. The breakout above the upper Bollinger Band suggests intense buying pressure. The 20-day Simple Moving Average (SMA) also trends upwards, indicating a sustained uptrend.
$180: The Key Hurdle for Bulls
However, hurdles must be overcome before reaching the coveted $200 mark. The $180 zone presents a critical short-term resistance level. A decisive break above this level would be a significant bullish signal, potentially propelling SOL towards $200.
Analyst Opinions: Divided but Hopeful
Analysts hold a mixed view of Solana’s immediate future. Some, like Lokesh from Coingape, point to a “cup and handle” pattern emerging on the daily chart. This pattern historically indicates a potential trend reversal from bearish to bullish. If the pattern holds, a breakout above $200 might be achievable.
Other analysts, however, remain cautious. The cryptocurrency market remains volatile, and a broader sell-off could drag SOL down. Some technical indicators, like the Parabolic SAR, suggest potential resistance at lower levels.
Solana’s Fundamentals Remain Strong
Long-term investors continue to have confidence in Solana because of its outstanding fundamentals. The blockchain platform is a vital substitute for Ethereum because of its quick transaction times and inexpensive costs. The Solana ecosystem’s continuous expansion, which sees new initiatives and decentralized apps (dApps) released regularly, enhances its standing in the industry.
Conclusion: A Test of Strength for Solana
The coming days will be crucial for Solana. If the bulls can maintain the momentum and push the price above $180, a retest of $200 becomes a realistic possibility. However, the broader market conditions and potential resistance levels should be addressed.
Investors considering entering the SOL market should conduct thorough research and employ proper risk management strategies. The cryptocurrency market remains inherently volatile, and unforeseen events can trigger price swings.
Disclaimer: We are obsessed with cryptocurrency and love to write articles to express our thoughts. This article is for informational purposes and contains the writer’s personal opinion. Don’t consider it financial advice from the author or the CoinzBTC team. Do your research and think twice before making any investment decisions. CoinzBTC does not take responsibility for any financial losses.
Also read: Crypto Expert Says That If This Occurs, Solana’s Price Might Go Up 80%
