Solana price wavered on Wednesday morning as investors reacted to the falling meme coins, US spending and tax bill, and the crypto market. SOL was trading at $150, a few points below this week’s high of $160.80.
Solana meme coins have crashed
Solana price has wavered this month as data shows that most meme coins in the ecosystem continued falling. Official Trump (TRUMP) dropped by 7 days in the past seven days to $8.6.
Similarly, Bonk has dropped by 2.5%, while top meme coins like Fartcoin, Dogwifhat, popcat, and ai16z have all fallen. Only meme coins like the Useless Coin, Pudgy Penguins, and Dog have risen in the last seven days.
As a result, the market capitalization of all coins dropped from over $15 billion earlier this year to $9.8 billion today.
This decline has also affected other parts of Solana’s ecosystem. For example, Solana is no longer the biggest chain for decentralized exchange (DEX) processing. Its DEX volume stood at $1.7 billion in the last 24 hours, bringing the seven-day figure to $62 billion.
BNB Smart Chain handled over $5.8 billion in the last 24 hours and $172 billion in the last 30 days. Solana’s transaction volume was higher than NBNB a few months ago.
Solana transactions jumping
On the positive side, data shows that Solana’s network is doing well as the number of transactions jumped by 50% to 2.13 billion tokens. Its transaction count was higher than the other top ten chains like BNB Chain, Base, Tron, and Aptos, combined.
Solana’s active addresses have jumped in the past few months and are also more than the top ten chains combined. It had 115.5 million active addresses, while BNB Chain had 26 million and Base had 35 million.
The other bullish catalyst for Solana price is that it is becoming a big player in stablecoin processing. While stablecoin supply in Solana has dropped by 7% in the last seven days to $10.1 billion, the number of stablecoin addresses has jumped by 6% to 3.1 million.
The volume of stablecoin transactions in Solana jumped by 24% in the last 30 days to over 181.8 million. This rising growth of stablecoins is a positive development because it generates more fees for Solana’s ecosystem.
Meanwhile, investors are certain that the SEC will approve the spot Solana ETF later this year. Polymarket odds for this approval have jumped to over 99%, a sign that they expect it to happen. A SOL ETF approval will lead to substantial inflows from Wall Street investors.
Solana price technical analysis
SOL price chart | Source: TradingView
The daily chart shows that the SOL price has been under pressure after rising to a high of $178 in June. It has dropped by over 20% from the year-to-date high, meaning that it is in a technical bear market.
The coin is fighting to remain above the 50-day and 100-day Exponential Moving Averages (EMA). A big drop from these averages will confirm the bearish breakdown.
On the positive side, Solana has formed a bullish flag pattern, a popular continuation sign. This pattern happens when an asset forms a vertical line and a descending channel.
Therefore, the SOL price will likely rebound and hit the next key resistance point at $187, the upper side of the flag pattern.
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