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The Solana price edged up 0.5% to trade for $97.44 as of 4:30 a.m. EST time on trading volume that surged nearly 50%.
It comes amid renewed interest in the SOL ecosystem after the December frenzy that saw the Layer 1 (L1) blockchain token skyrocket around 115%. It was then boosted by the Bonk (BONK) meme coin and Solana Saga smartphone themes.
bonk re-invigorated solana community at pico lows post ftx & its airdrop caused 20,000 of the first edition saga phones to sell out
memecoin dex volumes caused sol's onchain metrics to 10x+
dogecoin onboarded more normies last cycle to crypto than any other altcoin
idk mane https://t.co/oBHNXLs9xF
— Ansem 🐂🀄️ (@blknoiz06) January 24, 2024
Another reason for the rising interest in the Solana price now is the WEN token airdrop. It continues to make headlines and the narrative has inspired capital inflows into the SOL market as the token is built atop the Solana blockchain.
WEN Token Airdrop Sends Solana Signups On A Tear
Amid WEN token-related hype, Solana signups skyrocketed. It recorded the highest level on its 7-day moving average of new addresses, according to data crunched by The Block.
The Solana ecosystem has benefitted from a myriad of meme coins built atop its blockchain. These include BONK, MYRO, and now WEN, providing tailwinds for the skyrocketing signups. With WEN as the latest meme coin sensation on Solana, the ongoing airdrop will be allocated to more than a million users.
Nevertheless, data according to Dune analytics shows that 58% of the airdrop has been claimed as of the time of this publishing.
The WEN tokens are available for claim for as long as the window remains open (until January 30 at 10 a.m.) Eligible recipients include:
- Users of Solana’s Jupiter exchange
- Solana Saga phone owners
- Owners of certain Solana-based NFT projects
🚨JUST IN: 600k+ wallets has claimed $WEN @wenwencoin so far as less than 7 hours left before the claim ends pic.twitter.com/typMRCLr36
— SolanaFloor | Powered by Step Finance (@SolanaFloor) January 29, 2024
Meanwhile, the Solana price is on a recovery rally after collecting buy-side liquidity (BSL) below the $89.02 support level. It remains a recovery rally, not an uptrend, until SOL market value flips the supply zone into a bullish breaker. This will be confirmed by a break and close above the $126.36 range high.
Solana Price Prognosis With A Brewing Recovery Rally
The Solana price recovery rally is ongoing, with multiple technical indicators to support the bullish thesis. To begin with, SOL has overcome the resistance due to the 50-day Simple Moving Average (SMA) at $93.40. This supplier congestion level has been flipped into support and is now serving as the jumping-off point for an extension north.
With the 50-, 100-, and 200- SMAs all inclined north at $93.40, $72.41, and 47.33 respectively, it shows the north is the path with the least resistance. Furthermore, the Moving Average Convergence Divergence (MACD) indicator has moved above its signal line (orange band), which is a bullish crossover. A similar move is seen on the Relative Strength Index (RSI), moving above its signal line (yellow band). With these acting as buy signals, the upside potential for the Solana price could happen soon.
Increased buying pressure above current levels could see the Solana price reclaim the shelter offered by the ascending parallel channel, first flipping its lower boundary back into support. An extended push north could see SOL foray into the supply zone, which extends from $107.92 to $121.19. A break and close above its midline (mean threshold), which confluences with the center line of the channel at $114.76 would confirm the continuation of the intermediate trend.
In a highly bullish case, the Solana price could extend further north, breaching the upper boundary of the channel at $121.19. If it manages to break and close above the $126.36 range high, the supply zone would then become a bullish breaker. This could see the Solana price likely to extend the gains to the $140.00 psychological level, last tested on April 3, 2022. Such a move would constitute a 44% climb above current levels.
TradingView: SOL/USDT 1-day chart
Converse Case
On the other hand, a rejection from the lower boundary of the channel, effectively proving that the supply zone holds as resistance, could send the Solana price south. This would be the aftermath of profit-taking after the 25% gains made, or ground covered over the past week, since the $79.00 low on January 23.
The downside momentum could see the Solana price lose the support offered by the 50-day SMA at $93.40, or lower, to break below $89.02 buyer congestion level.
In the dire case, the L1 token’s market value could extend a leg lower, testing the 100-day SMA at $72.41, or if push comes to shove, revisit the December 18 low of $68.03. This would constitute a 30% fall below current levels.
Notably, the $114.76 level is critical for the Solana price’s upside potential. This is because two midlines intersect here to show it represents a formidable roadblock for the Solana price.
With Solana-based meme coins making headlines for the past couple of months, other sector tokens, MK and Sponge V2 are also hitting milestones. While analysts say they are among the best meme coins to buy now, Jacob Crypto Bury lists them as two outstanding hidden meme coin gems.
Promising Alternative To Solana
Sponge V2 is built atop the success of its predecessor, Sponge V1. And it is committed to providing just as much success as its forerunner, and then some.
Stop playing….start absorbing 🧽💦
We’re gunning for top spot 😎$SPONGE #SpongeV2 #DOGE #PEPE #FLOKI #BONK #Crypto pic.twitter.com/uv0Ezshl8g
— $SPONGE (@spongeoneth) January 26, 2024
Sponge V1 holders stake their SPONGE and earn Sponge V2 tokens. Those who purchase and stake now will receive a special V2 token bonus. The transition comes by way of a unique distribution mechanism, where Sponge V1 tokens are permanently locked in a staking contract.
📘 Visit our website and stake your $SPONGE to be part of V2's TAKEOVER.
Simple steps to significant rewards!
GO GO GO! 🧽💦💦#CryptoStaking #SpongeV2 #Web3 pic.twitter.com/3TF0HZIT9k
— $SPONGE (@spongeoneth) January 18, 2024
The staking is value-adding, effectively removing the tokens from circulation, thereby tilting the supply-demand dynamics in favor of demand. To acquire $SPONGEV2, the stake-to-bridge utility is the exclusive method, which distinguishes it from a standard presale. As of publishing time, over 6.279 billion tokens have been staked.
Huge milestone alert, #SPONGERS! 🔥
There are now over 6 billion $SPONGE tokens staked with a value of $3,958,206.14! 🤯
Our holders are enjoying an impressive current APY of +250%. 🚀
Join us and absorb the damp!! 🧽🧽💦💦#SpongeV2 #Crypto #Web3 #Alts #100x pic.twitter.com/llxFF0hfby
— $SPONGE (@spongeoneth) January 26, 2024
According to analysts, Sponge V2 has the potential to record 100X gains at launch, like its predecessor.
Visit the Sponge V2 website here.
Also Read:
- Two Hidden Meme Coins to Watch in 2024 – New Crypto Gems With 100x Potential
- Crypto YouTuber Crypto Boy Provides Update on Sponge V2 Ahead of Its Upcoming Listing
- Maximize Portfolio Potential with the Top 3 Solana-Based Meme Coins for the Next Bull Run
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- Layer 2 Meme Coin Ecosystem
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- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
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