Solana (SOL) has experienced a surge in trading volumes, surpassing $2.5 billion on major exchanges on Monday. This increase in trading activity has led to a jump in SOL’s price, testing the $150 mark after earlier session lows under $140. However, despite the price rise, SOL has remained within its $120-$160 range over the past month.
Traders are now anticipating upcoming US economic data releases later in the week, such as the US CPI and Retail Sales, which could impact the interest rate outlook. In the meantime, attention in the market has turned to meme coins and meme stocks following the sudden return of Roaring Kitty, a well-known figure in the meme coin space.
Solana has emerged as the leading meme coin blockchain in 2024, and if the return of Roaring Kitty, coupled with low gas fees on major blockchains like Ethereum, ignites a new meme coin season, Solana could stand to benefit significantly.
In terms of price prediction, if meme coin season returns and Solana meme coins gain prominence, a break above the $160 resistance level could open the door for a swift rally back to $200. On the other hand, if meme season fails and the broader market sentiment leads to a sell-off, Solana could break lower. In such a scenario, long-term support at $120 will be a crucial level, and a break below it could result in a test of $100 or even lower.
However, even in the event of a sell-off, it is likely that Solana whales, large investors with strong conviction, will enter the market and buy the dip. This could indicate a near-term bottom and present an opportunity for recovery.
In addition to Solana, a new meme coin called Slothana (SLOTH) has gained attention since its recent launch. The Sloth-themed meme coin has experienced a 550% increase in price since May 1, with a market cap nearing $100 million. As meme coin risk appetite returns, Slothana could potentially become a multi-billion-dollar coin and emerge as a significant player in the market.
Overall, the future of Solana’s price will depend on various factors, including the performance of meme coins, market sentiment, and the broader macroeconomic backdrop. Traders and investors will closely monitor these developments to make informed decisions in the SOL market.