Solana’s (SOL) price is up today, buoyed by a modest recovery on the broader cryptocurrency market after enduring 48 hours of sustained selling pressure.
Why is Solana price up today?
Notably, on April 3, SOL’s price jumped approximately 5.75% to around $192. In doing so, the cryptocurrency fared better than the overall crypto market, which rose 2.2% in the same period.
Memecoin mania continues
Solana’s gains today coincide with the recoveries in the market valuation of its viral memecoins, namely Dogwifhat (WIF) and Bonk (BONK).
Related: Meet the Solana memecoin that suffered two rug pulls but still survived
WIF and BONK have bounced 5.4% and 1.3% in the last 24 hours, respectively. Among the highest memecoin gainers in the Solana ecosystem are the newly launched Cat in the Dogs World (MEW) and Book of Meme (MEME), which rose 45% and 9.5% in the same period.
Solana’s bulls have lately responded positively to the launch of memecoin projects on its blockchain, with recent Franklin Templeton research noting that these so-called joke cryptocurrencies “have a strong relationship with their native networks.”
In theory, viral memecoin projects can potentially fuel speculative interest in their underlying blockchain network’s native tokens. For instance, Solana’s rival BNB Chain is even offering a $1 million reward to attract memecoin developers to its layer-one blockchain.
As a result, the surge in Solana-based memecoins recently has been closely aligned with a boom in the network’s total value locked (TVL); it has grown 70% so far in 2024 to reach 23.78 million SOL on April 3, indicating robust underlying demand for SOL.
Solana’s market dominance is rising
Solana’s upside move today further benefits from its growing market strength versus the rest of the cryptocurrencies.
Notably, the Solana Dominance Index (SOL.D), which measures SOL’s market capitalization against the broader crypto market, rose 3.95% on April 3. The index has grown 28% year-to-date, indicating growing capital rotation into Solana.
Institutional investors significantly contributed to Solana’s rising market prominence by channeling almost $25 million into SOL-based investment funds in March, according to CoinShares’ weekly report.
In comparison, Ethereum (ETH), Solana’s main rival, experienced a withdrawal of $67.2 million.
Solana pric technical analysis
From a technical perspective, Solana’s gains today come after bouncing from the lower trendline of its prevailing ascending triangle pattern.
Traditional analysts see ascending triangles as bullish continuation patterns if they form during an uptrend. As of April 3, SOL’s bounce from the triangle’s lower trendline signals a jump toward the upper trendline at around $205, up 8% from the current price levels, in the coming days.
A potential break above the triangle’s upper trendline can position the price for a push toward $250 in April, up over 35% from current levels. Otherwise, the price may consolidate further inside the triangle range, eyeing $175.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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