Key Insights
- Solana price has formed a bullish signal after a decent fall.
- Meme coin trading 67% of DEX volume shows life.
Solana (SOL) price has witnessed a slow and steady elevation over the past few months. However, the bullish momentum was interrupted near the $300 territory and the momentum shifted to the sellers.
In the $300 zone, Solana price has received strong selling pressure and investors are in trouble. After this bearish momentum, the SOL price has formed a bullish candlestick pattern near the $160 mark.
Meme Coin Handling Selling Pressure
Solana’s meme coin bubble may burst, critics warn. 50–70% of its decentralized exchange (DEX) trading volume is driven by meme coins, which is significant for the network.
However, the bubble remains intact. According to BlockworksResearchdata, meme coins make up 67% of Solana’s DEX volume, reaching $3.2 Billion every day.
That is higher than the two-month low of $3.7 Billion set in late December 2024, but lower than recent highs. Following the $TRUMP peak on January 19, 2025, trading volume decreased, but it is currently holding steady above historical lows.
In a technical sense, Solana is stuck. According to market charts, its price has been following a descending triangle since November 22, 2024, which suggests further declines.
SOL Price Shaped a Morning Star: Can it Lead to Recovery?
Solana crypto was trading at $180 at press time which is up by 2.22% over the past 24 hours. It had a market capitalization of $87.0 Billion and the 24-hour trading volume was around $3.73 Billion.
Based on the technical chart, the SOL price has slipped below a support zone of $180. However, buyers have managed to lift the price to this zone which might bring confidence among bulls.
On the daily time frame, the SOL price has formed a morning star candlestick pattern. This is a bullish pattern that may attract bulls.
Once the price exceeds the 200-day EMA, buying pressure can be received. Holding the key moving averages could work as a catalyst and a strong buying pressure can be experienced. It might regain its previous month’s high amid this bull run.
Alternatively, if the Solana crypto price tests the $180 mark and forms any bearish candlesticks, buyers might fear. If the price slips below the $160 level, buyers might lose their grip. Here, selling pressure could help to continue the bearish trend.
RSI has triggered a golden crossover with the RSI-based moving average. This might attract bulls and a decent bullish move can be observed.
SOL Price Analysis Amid Sharp Fall
Solana recently showed signs of bullish potential after experiencing a decline, particularly forming a morning star candlestick pattern near the $160 mark. This suggests a possible recovery if the price can maintain above the critical support level of $180.
However, despite the encouraging signals from the candlestick patterns and the RSI indicating a golden crossover, concerns about the influence of meme coins on the network persist.
With meme coins comprising 67% of DEX trading volume, any shift in sentiment could impact Solana’s price. For a sustained upward movement, SOL must surpass the 200-day EMA and continue attracting buyers.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
