- The rise of Solana meme coins has helped the layer one network attract more on-chain activities in the recent past.
- An anticipated altseason that will be triggered by a reversal in Bitcoin dominance and the ETH/BTC pair will push the SOL price to a new all-time high soon.
The cryptocurrency market has remained largely calm in the past few weeks with Bitcoin’s (BTC) price hovering around the support/resistance level of about $64k. However, according to market data provided by CoinShares, digital asset investment products saw an outflow totaling $251 million last week, thus registering the fourth consecutive week of cash outflows.
The altcoin market has been waiting for the ultimate bullish signal from Bitcoin and Ethereum in the past few weeks. Furthermore, Bitcoin’s dominance has continued to show an inevitable reversal in the near term. Additionally, the ETH/BTC pair has been retesting multi-year low, with a similar fractal as the pre-2021 bull run.
According to the latest data, the altcoin market cap has established a support level of around $1 trillion and is likely to double to an all-time high (ATH) in the coming months.
Solana to Lead Anticipated Altcoin Pump
Solana (SOL), a top-tier layer one blockchain that has facilitated more than $20 billion in bridged total value locked (TVL), has grown into a major web3 ecosystem with its smartphone Saga mobile. SOL, a large-cap altcoin with more than $83 billion in fully diluted valuation, has been at the FTX center stage.
However, the continued demand for SOL by institutional investors has helped the altcoin become a major web3 hub with over $3.2 billion in stablecoins market cap. As Crypto News Flash previously pointed out, distressed crypto exchange FTX has been conducting SOL auctions to repay its customers.
As a result, a popular crypto analyst on X platform alias Inmortal believes the SOL price against the US dollar is in the last dip before the anticipated parabolic rally to a new ATH. The crypto analyst opined that the SOL price has established a solid support range between $120 and $130.
Last dip ever$SOL pic.twitter.com/SDfxYCT6EC
— Inmortal (@inmortalcrypto) May 5, 2024
From a technical standpoint, the SOL price must clear the resistance level around $159 and convert the daily 50 Moving Average (MA) to a support level. Otherwise, the SOL price could end up retesting the support level around $127 before a bullish rebound towards its ATH.
According to the latest market data, SOL price gained 20 percent in the past week to trade around $145.68 on Wednesday, May 8, 2024.
Takeaway Points
As the total altcoin market cap prepares for the final sendoff to the price discovery phase in the coming quarters, most of the meme coins have shown early signs of bullish divergence. According to the crypto analyst, Inmortal, if the SOL price rebounds in the coming weeks, top meme coins led by FLOKI, DOGE, and PEPE will follow the same path.
IF $SOL goes up, THEN $FLOKI, $DOGE, $PEPE go up too.
Especially interested in $FLOKI
> Deviation + Retest + 200MA
> A bit lagged pic.twitter.com/ZMU19e6FuF— Inmortal (@inmortalcrypto) May 5, 2024
The crypto analyst emphasized the FLOKI bullish outlook backed by a growing ecosystem and technical bits. Moreover, FLOKI’s price has gained over 16 percent in the past week to trade around $0.000169 at the time of this writing.
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