Solana Facing $173 Resistance as Memecoin Frenzy Slows Down

Major cryptocurrency Solana is targeting a short-term resistance level of $173, according to popular crypto commentator CryptoMist. She believes the fifth-largest cryptocurrency by market capitalization presents a strong buying opportunity as the bull market approaches.

Solana’s Resolute Struggle

Solana had a tough 2021-2023 bear market, and the index dropped below $100 from an All-Time High (ATH) of $250 set in 2021. However, SOL started to recover strongly in the last quarter of 2023, largely owing to the massive success of the meme coin sector. A major chunk of the tokens launched in this space was on the Solana blockchain, giving it an early respite from the bear market.

However, the last few months have been challenging for the crypto sector. The market came under selling pressure due to a large bitcoin dump by the German government and a lack of motivating external stimuli.

30-Day Price Action

Image Source: TradingView

Solana has had a roller coaster the last 30 days, with the price index swinging significantly in either direction. In the buildup to August, the programmable blockchain network rose to a new multi-month high above $190, following the general trend of the crypto market. Meme coins were once again at the forefront of this major price reversal, but that was not to last.

SOL started dipping sharply at the start of this month and eventually dropped close to $110 within a week, marking a 40% price increase in a little over a week. The cryptocurrency has since recovered doggedly and is changing hands above $140 at press time, $144 to be precise. 

The Future

Solana is one of the top-performing digital currencies with a strong development community and growth potential. However, a large part of its recent success is tied to the meme coin economy, and its dynamics are unpredictable. It has slowed down considerably in the last couple of months and could move to another blockchain network to try and stimulate interest. Tron (TRX) is emerging as the next big candidate for launching new meme tokens, and if it manages to pull this off, Solana will likely suffer even if the crypto market transitions to the next phase of the bull market.

But it is too early to declare TRX the network of choice for launching new tokens. The third and fourth quarters of 2024 will be crucial in that regard. Traders need to monitor the news and stay abreast of the latest developments.