After a Blazing Start to Q2, Solana Meme Coins Witness a Significant Pullback

After a blazing start to the second quarter, Solana meme coins are witnessing a significant pullback in early May.

Solana meme coins are trading lower in early May, after a blazing start to the second quarter.

Data from CoinGecko shows that the combined market capitalization of the Solana meme sector is down 12% on Sunday, with Official Trump (TRUMP), Melania Meme (MEME) and Bonk (BONK) among the worst performers.

However, the soaring global liquidity clearly shows that the crypto bull market is here. As a result, smart money investors are buying the dip in Solana meme coins, anticipating new highs in Q2 itself.

Among the blue-chips, Dogwifhat (WIF), Bonk (BONK) and Popcat (POPCAT) have emerged as standout choices. Among the low-cap gems, Solaxy is being viewed as one of the best cryptos to buy.

Why Are Solana Meme Coins Crashing?

Solana meme coins are pulling back as part of the broader crypto market correction. After trading as high as $98,000 last week, the Bitcoin price fell to $93,600 on Monday, leading to selling pressure on the altcoins.

The Solana price also fell to $142 on Monday, marking a decline of nearly 9% from last week’s high. Solana meme coins continue to have a strong correlation with the SOL price movements, which partially explains the sector-wide correction.

While some investors are booking profits, others are simply exercising caution and reducing leverage ahead of this week’s FOMC meeting.

Prominent analysts like CGR also highlight that Official Trump’s flash crash, which is a price action pattern usually seen during a rug-pull, could also explain the weakness in Solana meme coins. The $TRUMP coin price is now down 25% from last week’s high, leading to speculation that its developer team might be dumping their coins.

$TRUMP kinda flash crashed today, probs explains why SOL memes are getting nuked pic.twitter.com/iDzQGHCjo4— CGR (@cgr_) May 7, 2024

However, despite the broader market decline, experts opine that sidelined investors should be buying the dip in Solana meme coins.

Why Investors Should Buy The Dip

During a bull market, smaller investors tend to overreact to short-term price action rather than focusing on the broader trend.

The Bitcoin price is once again showing a strong correlation with Global M2 money supply, albeit with a 12-week lag. The indicator even accurately predicted the April 7th crypto market bottom. If BTC continues to follow the Global M2 trajectory, it is poised for a rally to $140k, GMI’s CEO Raoul Pal reveals.

If #Bitcoin continues to follow the Global M2 trajectory (which it does), it will hit $140k in 12 weeks' time. It's already following the pattern perfectly, with a 12-week lag. We're in the last stage of the bear market, which is a bull market. From the lows of 2022, BTC has risen 300% in just 10 months. We're still in a bull market despite the recent price action, which is just a correction. As the Global M2 peaked in February 2022, we can see that the new bull market cycle has begun, and it's going to be massive! As the last bull market cycle reached $20k, this time we're aiming for at least $140k, especially considering the parabolic stage, or the "banana zone" as some call it, hasn't even started yet. Keep an eye on this indicator for optimal buying opportunities. Best wishes to all! 🍌.

— ATOM (dropped my crypto) (@GMI_Token) May 7, 2024

Moreover, Pal believes that the parabolic stage of Bitcoin’s bull run, often known as the “banana zone”, hasn’t even started yet.

With Solana meme coins in high demand, BTC’s strength could provide them a significant boost, potentially resulting in new highs in the second quarter itself.

Best Cryptos To Buy Now

Among the wide variety of options, Dogwifhat (WIF) is quickly establishing itself as one of the best Solana meme coins to buy now.

Prominent investors like Trader Koala highlight that WIF is showing resilience, given the broader market uncertainty.

$WIFOne of the better-looking altcoins that is still waiting for its time to shineRanging before expansion and expecting it to lead next.0.75 is not a real resistance levelTime reveals…

🤌pic.twitter.com/YUwqJcWln9— TraderKoala 🐨 (Lost Alot Of Bitcoin In 2023