Solana price has shed 62% from its ATH of $295.83, yet the unique meme coins or crypto tokens being created on the Solana (SOL) blockchain hit 40M in February. Is the SOL hype train a myth? Will price recover and kickstart an uptrend here? Let’s find out.
Why 40M Unique Crypto Tokens Were Created On Solana Even as the Price Crashed 62%?
The unique value proposition of PumpFun that allows investors even a layman to simply create a token with a click of a button is why the total unique crypto tokens on Solana Blockchain continue to explode. Even as SOL value shed 62% in the last 52 days, this metric continues to rise, showcasing that retail investors’ risk-taking appetite is yet to climax.
Does this mean a reversal in Solana price is what’s next? Unlikely. The price action of Solana is dependent on the larger crypto market ecosystem and the macroeconomic policies that impact Bitcoin (BTC).
So, what’s next for SOL?
Will Solana Price Soar as Altcoin Dominance Hints Reversal?
The altcoin dominance, which is the combined market capitalization of cryptocurrency ecosystem excluding Bitcoin. The recent recovery of altcoin market cap above $218 billion notes that a resurgence of bullish momentum. A decisive breakout above the $229 billion to $230 billion level will suggest a shift in market structure favoring bulls. Such a development will indicate that there could be a mini bull run, which pushes the market cap to the $300 billion to $310 billion range.
Hence, investors can expect Solana, which is at the forefront of top altcoins to hold, to trigger a bullish reversal.
How High Can Solana Go?
Based on the recent price action, Solana has recovered above the February 28 swing low of $125, signaling a resurgence of bullish momentum. To add credence to the buying pressure, SOL has also produced a higher high on the daily chart.
The next key support zone is $128 to $120, a bounce here could see the altcoin propel to the range high of $179. But ideal take profit levels based on bullish Solana price predictions extend from $180 to $186.
While Solana price action remains dependent on the larger crypto market ecosystem, the surge in unique crypto tokens and potential resurgence of bullish momentum in the altcoin market hint at a possible bullish reversal.
The post Unique Crypto Tokens On SOL Hits 40M Even as Solana Price Crashes 62%, What’s Next? appeared first on CoinGape.
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