Solana’s Meme Coin Frenzy: Hype or Sustainable Trend?
- The Solana ecosystem has witnessed significant growth in the last month.
- The values of some meme coins on Solana have more than doubled during the same period.
- Of all the tokens observed, ANALOS appears to be the only one that can sustain its current rally.
Solana (SOL) is poised to close the year as the best-performing altcoin. Trading at a price level last observed in April 2022, the coin’s value has risen by 95% in the last month.
The price surge in the last month led to a corresponding uptick in market capitalization. This propelled the coin to surpass Binance Coin (BNB) and Ripple’s XRP, securing its position as the fourth-largest cryptocurrency by market capitalization.
An Assessment Of Some Solana-based Meme Coins
The increase in SOL’s price and the overall Solana ecosystem has led to a rally in the values of some of the meme-based assets on the network.
One such asset is the dog-themed BONK, whose value surged by over 300% in the last month, according to data from CoinMarketCap. At press time, the token traded at $0.000018.
With many expecting the hype around the meme coin to weaken, the last week has been marked by significant profit-taking activity. In the last seven days, BONK’s price has declined by almost 15%.
Price movements assessed on a 24-hour chart showed a bearish crossover of the token’s Moving Average Convergence Divergence (MACD) line and its trend line on 22 December. Since then, the MACD indicator has posted only red histogram bars, suggesting a decline in BONK buying activity.
This was confirmed by its Relative Strength Index (RSI), which trended downward at press time. A decline in BONK’s RSI showed that selling pressure exceeded accumulation among its spot traders.
The bearish takeover of the BONK market coincided with when its weighted sentiment turned negative, according to data from Santiment. Unless sentiment improves, the token might shed some of its gains in the coming weeks.
Another Solana-based meme coin that has seen similar performance is the Samoyedcoin (SAMO). Trading at $0.01721 at press time, the token’s price has more than doubled in the last month.
However, with considerable token sell-offs conducted in the last week, its price has plummeted by 20% during that period.
Depicting the low demand for the altcoin, its Accumulation/Distribution line has declined by 5% since December 16.
When an asset’s accumulation/distribution line decreases, it shows that less money is flowing into the asset and that selling pressure is gaining momentum.
WIF Sees A 100% Intraday Jump
Dogwifhat (WIF) is another Solana meme coin that has recorded significant success in the past few weeks. In fact, during the intraday trading session on December 25, the token recorded a 100% price jump following its listing on a major cryptocurrency exchange Crypto.com.
However, this jump further increased WIF’s price volatility. As its price doubled, the gap between the upper and lower bands of its Bollinger Bands Indicator widened.
When these bands widen, it is an indication that the asset is prone to price swings.
Of all the leading meme tokens based on Solana, analoS (ANALOS) stands out as it appears poised to continue its own upward trajectory.
In the last month, the altcoin’s value has risen by 188%. While others have experienced a decline in the last week, ANALOS’ price has seen a 185% surge during the same period, according to CoinMarketCap.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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