Solana’s Meme Coin Frenzy: Hype or Sustainable Development?

• The Solana ecosystem has witnessed important development within the final month.
• The values of some meme cash on Solana have greater than doubled throughout the identical interval.
• Of all of the tokens noticed, ANALOS seems to be the one one that may maintain its present rally.

Solana (SOL) is poised to shut the yr because the best-performing altcoin. Buying and selling at a worth stage final noticed in April 2022, the coin’s worth has risen by 95% within the final month.

The worth surge within the final month led to a corresponding uptick in market capitalization. This propelled the coin to surpass Binance Coin (BNB) and Ripple’s XRP, securing its place because the fourth-largest cryptocurrency by market capitalization.

An Evaluation Of Some Solana-based Meme Cash

The rise in SOL’s worth and the general Solana ecosystem has led to a rally within the values of a few of the meme-based property on the community. 

One such asset is the dog-themed BONK, whose worth surged by over 300% within the final month, in accordance with information from CoinMarketCap. At press time, the token traded at $0.000018.

With many anticipating the hype across the meme coin to weaken, the final week has been marked by important profit-taking exercise. Within the final seven days, BONK’s worth has declined by nearly 15%.

Worth actions assessed on a 24-hour chart confirmed a bearish crossover of the token’s Shifting Common Convergence Divergence (MACD) line and its pattern line on 22 December. Since then, the MACD indicator has posted solely pink histogram bars, suggesting a decline in BONK shopping for exercise.

This was confirmed by its Relative Energy Index (RSI), which trended downward at press time. A decline in BONK’s RSI confirmed that promoting stress exceeded accumulation amongst its spot merchants. 

The bearish takeover of the BONK market coincided with when its weighted sentiment turned destructive, in accordance with information from Santiment. Except sentiment improves, the token may shed a few of its positive factors within the coming weeks.

One other Solana-based meme coin that has seen related efficiency is the Samoyedcoin (SAMO). Buying and selling at $0.01721 at press time, the token’s worth has greater than doubled within the final month.

Nonetheless, with appreciable token sell-offs performed within the final week, its worth has plummeted by 20% throughout that interval.

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 reveals that much less cash is flowing into the asset and that promoting stress is gaining momentum. 

WIF Sees A 100% Intraday Leap

Dogwifhat (WIF) is one other Solana meme coin that has recorded important success previously few weeks. In truth, through the intraday buying and selling session on December 25, the token recorded a 100% worth leap following its itemizing on a serious cryptocurrency alternate Crypto.com.

Nonetheless, this leap additional elevated WIF’s worth volatility. As its worth doubled, the hole between the higher and decrease bands of its Bollinger Bands Indicator widened. 

When these bands widen, it is a sign that the asset is susceptible to cost swings. 

Of all of the main meme tokens based mostly on Solana, analoS (ANALOS) stands out because it seems poised to proceed its personal upward trajectory. 

Within the final month, the altcoin’s worth has risen by 188%. Whereas others have skilled a decline within the final week, ANALOS’ worth has seen a 185% surge throughout the identical interval, in accordance with CoinMarketCap.