SOL Dips Despite Surge of Meme Coins on the Solana Ecosystem

Solana (SOL) has seen its value drop significantly in the last 24 hours, even as activities on the ecosystem surge thanks to meme coins.

Solana (SOL) price dropped significantly in the last 24 hours even as activities on the ecosystem surged thanks to meme coins. The digital asset tanked nearly 6% as its market capitalization dropped to as low as $63.83 billion at the time of writing.

Meme Coins on the Rise

Meme coins like Book of Meme (BOME) saw its open interest surge to a new height of 10% this week after a four-month low. Another meme coin known as Mog Coin (MOG) also witnessed a more than 20% increase on Thursday.

The token also saw its trading activities spike up as well. As of July 11, the trading volume of MOG stood close to $36 million, making it a 15% increase from the previous day.

In addition to both BOME and MOG, another meme coin known as WATER surged 350% in a single day after popular football legend Lionel Messi promoted the token on Instagram.

WATER rose from its price of  $0.00032 to $0.00146  within two hours after the Instagram post.

However, despite the surge of meme coins on the Solana ecosystem, SOL itself has not had a good week as the digital asset continues to dip alongside Bitcoin (BTC) and Ethereum (ETH).

Earlier this technical analysis highlighted that SOL’s price fell below the $141 level, dropping to a low of $138. This uptick occurred less than 24 hours after the bears lost their grip on the coin, with the bulls gaining traction.

During this period, SOL recovered above the 20-day EMA, which was marked at $141. If the price sustains above this level, it could indicate a potential climb to the 50-day SMA ($151), where strong resistance from sellers is anticipated. If the price fails to突破此水平，则看跌者可能瞄准跌至 116 美元。

Solana (SOL) Market Sentiment and Future Outlook

However, if the price breaks and closes above the 50-day SMA, it would indicate robust demand at higher price points. In this scenario, the digital asset could advance towards the downtrend line. For the descending triangle pattern to be invalidated, buyers would need to push the price beyond this downtrend line.

Meanwhile, the market sentiment surrounding SOL is mixed. The rising meme coin activity in its ecosystem indicates a thriving community and increasing user engagement, while the overall bearish trend in SOL’s price reflects broader market challenges.

Investors are keeping a close watch on the regulatory landscape and macroeconomic factors that could influence the trajectory of digital assets like SOL.