Memecoin trend fuels SOL activity
Memecoin trend fuels SOL activity
While many cryptocurrencies faced selling pressures, Solana (SOL) has been the standout performer recently.
Solana has risen approximately 4% this week, making it the best-performing crypto asset for the last 7 days. This contrasts sharply with Bitcoin’s 3.1% decline and Ethereum’s 8% drop.
Solana's recent ascent has been driven by a breakout from an ascending triangle pattern above the $160 resistance zone. Since the October lows, SOL has rallied by a remarkable 31%, and the next target for bullish traders is the $190 mark. This upward momentum signals strong market interest and the potential for further gains.
Memecoin and SOL futures market insights
Much of Solana's recent surge can be attributed to a resurgence of speculative activity surrounding memecoins. With decentralized finance (DeFi) protocols on Solana, network revenues from transaction fees have surged to over $4 million per day, a tenfold increase since early September. This trend has propelled active users on the chain to record highs, exceeding 8 million.
On the futures front, open interest in SOL contracts has soared to over 18 million SOL (approximately $3.09 billion), the highest level since January 2023. In just four days, this figure jumped by nearly 3 million SOL, indicating fresh capital entering the market. In addition, funding rates for perpetual contracts are at 10% annualized, suggesting that most traders are bullish, expecting prices to climb higher.
With Solana exhibiting such relative strength and an influx of speculative interest, the coming weeks could be pivotal. If SOL can maintain its momentum and break through key resistance levels, we could see a bullish phase take shape.
Solana surged over the weekend by 13%. This is due to renewed excitement around Solana's Firedancer validator.
