Solana defends crucial support as Popcat and Fartcoin see price increases

Solana has shown some resilience, defending its crucial 200-day moving average despite recent market challenges. Over the weekend, the token gained upward momentum, rising for three consecutive days to reach $210, marking its highest point since February 5. However, it remains around 30% below its December peak.

The recovery has been partially driven by the rebound of some Solana-based ecosystem tokens. Meme coins like Fartcoin and Popcat have seen significant price increases, with Fartcoin rising nearly 30% and Popcat soaring over 80% from their February lows. Other notable meme coin performers included ai16z, Cat in a Dog’s World, and Comedian, each rising by over 10%. According to CoinGecko, the combined market cap of these tokens grew by 7.3% in the last 24 hours, now exceeding $11.98 billion. At one point, the total market value of these meme coins reached over $25 billion.

Solana itself has continued to see success in 2023, with the Solana ecosystem experiencing significant growth. TokenTerminal data shows that Solana has generated over $282 million this year, making it the fourth-largest player in the crypto market, following Tether, Tron, and Jito. Its decentralized exchange (DEX) networks, including Raydium, Meteora, Orca, and Jupiter, have been steadily gaining market share.

The possibility of a Spot Solana ETF also looms large, with odds of approval now at 85%. Investors are optimistic that the current SEC under Trump might take a different approach compared to the previous one, possibly favoring Solana’s growth.

Solana Price Analysis

The recent price action on the daily chart reveals that Solana’s (SOL) price found support around $190 last week, right at the 200-day Exponential Moving Average (EMA), which is a critical level. The upward movement over the past two days indicates that bulls are actively defending this support level, suggesting that it remains crucial for the price trend.

If SOL price drops below this level, it risks falling toward $169, which marks the neckline of a double-top pattern formed at $265. A double-top pattern is often a bearish indicator in technical analysis.

In the short term, the price outlook for Solana is neutral, with a potential for downside if it falls below $169. However, if the price breaks above the $265 resistance level, this could trigger a bullish breakout, validating predictions like VanEck’s forecast of a price surge toward $520.