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Monday, June 10, 2024
HomeCryptoSolana (SOL) is unlikely to reach $200 next week

Solana (SOL) is unlikely to reach $200 next week

The number of unique active wallets (UAW) on Solana has recorded a staggering spike in the past 24 hours. Decentralized applications including Jupiter, Raydium, and Magic Eden have contributed to the above growth.

UAW on Jupiter Exchange aggregator reached 307,100, representing a 251% increase. Meanwhile, Raydium’s UAW rose to 285,200 and Magic Eden recorded a 178% jump

Source: DappRadar

Memecoin stirs up Solana

The increase in activity on Raydium and Jupiter may be related to increased memecoin activity in the market. This memecoin fever may come from the story of GameStop (GME) and Short squeeze god Keith Gill, commonly known as “Roaring Kitty”.

On June 7, a series of derivative tokens linked to traders appeared like mushrooms after rain on the Solana network, and recorded an incredible jump in market capitalization in a short period of time.

This situation also indicates an increased need for SOL. However, at the time of writing, SOL is trading at $159, down 1.5% in the past 24 hours.

Source: TradingView

So why hasn’t SOL been able to maintain price momentum despite rising demand?

For many degen*, the idea of ​​buying memecoins was untenable. In cryptocurrency, degen is often used to refer to those who engage in high-risk and often short-term investment activities. These people often invest in new, unproven, or highly volatile crypto assets in the hope of making large profits in a short period of time. Therefore, when the token reaches a certain profit level, they will exchange it for the native Solana token and then sell it to secure the profit.

There has been a lot of such Pump & Dump activity going on lately, and it probably won’t stop any time soon. If that is the case, SOL price could continue to move sideways.

In addition, SOL’s volatility – which measures the rate at which prices change – in a day has skyrocketed. If selling pressure mounts amid high volatility, the token could slide.

On the other hand, increased buying pressure accompanied by high volatility can cause a price breakout.

Source: Santiment

Another factor that can influence SOL price is Bitcoin. Solana’s correlation with Bitcoin has decreased since June 6, showing that the prices of the two do not always move in the same direction.

Therefore, if BTC rises above $71,000 again, there is no guarantee that SOL will return to $187. However, if the market recovery is more widespread, SOL could follow a similar path.

Regardless of which direction SOL goes, the cryptocurrency is unlikely to reach $200 in the coming week.

You can see SOL prices here.

Itadori

According to AMBCrypto

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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