The price of Solana is maintaining the crucial support level of $140 following the launch of the PumpFun meme coin launchpad, which has surpassed Ethereum in annual fees.
This development has led investors to speculate on the possibility of SOL achieving an all-time high of $300 in the near future, especially given that previous surges in meme token activity have contributed to its price increases.
Solana Price Today as $140 Support Holds
The current trading value of $SOL is $143, reflecting a slight decline of 1% over the past 24 hours, as the overall cryptocurrency market experienced bearish pressure following Bitcoin's drop below $95,000.
In spite of the increased volatility, this leading altcoin has managed to maintain its support level at $140, indicating the potential for a significant upward rebound should buyers enter the market.
Analyzing past trends, this support level has frequently influenced the subsequent direction of Solana's price.
Each time this level was maintained, SOL experienced a significant rebound, whereas a breach below it has led to a substantial downtrend, the latest instance resulting in a decline to approximately $105.
This time, the trend may indicate a considerable upward movement following an increase in meme coin activity, which could lead to significant price gains.
SOL’s PumpFun Overtakes Ethereum in Fees
The launchpad for the PumpFun meme coin has surpassed Ethereum in terms of fees, which bolsters a positive price forecast for Solana.
According to data from Tokenterminal, Ethereum's fees for the year to date amount to $248 million, significantly less than the $294 million in fees reported for PumpFun.
The data indicates that meme coin transactions on PumpFun are surpassing the decentralized application (dApp) transactions on Ethereum, which serves as a positive signal for the price of Solana.
The increase in meme coin transactions also resulted in SOL exceeding Ethereum in decentralized exchange (DEX) activity last month, with volumes reaching $70 billion compared to Ethereum's $56 billion, as reported by DeFiLlama.
SOL Short-Term Forecast
In spite of the increase in blockchain activity and predictions of an imminent Solana price surge to $300, the short-term outlook remains pessimistic, as technical indicators suggest a transition from bullish to bearish trends is forthcoming.
The MACD indicator has generated a sell signal after falling below the signal line, indicating that downward pressure is likely to begin.
Additionally, the RSI is declining after establishing a higher low. Should this metric fall below 50, it will validate that the momentum has shifted to bearish, potentially driving SOL down to $112.
Should traders decide to purchase Solana at this moment due to the favorable sentiment generated by the increasing blockchain activity, it is probable that the SOL price will maintain support at $139 and target the resistance level of $180.
Surpassing this resistance could lead to significant gains for the altcoin, potentially allowing it to outperform Ethereum.
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