- According to analysts, SOL may experience a surge fueled by a resurgent trend of memecoins on its blockchain.
- However, SOL is currently situated at a crucial short-term supply zone; will it manage to surpass it?
The renewed speculation surrounding memecoins on Solana [SOL] has the potential to enhance the altcoin’s long-term prospects.
Ryan Watkins, co-founder of crypto venture capital firm Syncracy Capital and a former researcher at Messari, indicated that Solana’s advantage with memecoins could support its price increase, referencing the recent excitement surrounding the AI-originated GOAT token. He mentioned,
“I’m indifferent about whether memecoins are modern-day religions or if AI entities are actually creating cults on-chain; all I know is that everything circles back to $SOL.”
The Memecoin Frenzy on Solana
To substantiate his point, the executive pointed out that the blockchain has emerged as the center of ‘all speculative activities this cycle,’ which was evident on Raydium, a decentralized exchange (DEX) built on Solana.
This DEX recently achieved a record market share of 72% amid this week’s resurgence in meme coin activity.
“It’s important to note that Raydium, the leading DEX for trading memecoins on Solana, reached new market share highs this week as well.”
Source: X
Interestingly, data from Kaito indicates that GOAT leads the meme coin category in terms of mindshare, further solidifying its influence this week.
During the same timeframe, it accounted for nearly 12% mindshare compared to its competitors, with Dogecoin [DOGE] being the closest contender.
Source: Kaito
In addition, another market analyst, Gumshoe, echoed Watkins’ perspective and remarked on SOL’s strong performance over the weekend. He mentioned,
“Solana is where on-chain speculation is taking place; the market is likely to start recognizing this paradigm shift soon.”
Source: Santiment
Data from Santiment corroborated these insights, showing that SOL’s sentiment was notably positive last week.
However, it remains unclear whether this optimism was driven by the Bitcoin [BTC] surge or the revived meme coin excitement.
At the time of writing, SOL was trading around $160, which represents a mid-range level and a bearish order block (OB). Essentially, this area serves as a critical supply zone that, if surpassed, could potentially propel SOL towards $180 in the near term.
Nevertheless, if the price faces rejection at this supply zone, the altcoin may be pulled back to the 50-day EMA (exponential moving average) at $147 or retreat to its range lows.
Source: SOLUSDT, TradingView
