Why Is Solana Price Rising? An Analysis of the Reasons
Title: "Solana Continues Upward Trend with Meme Coin Craze and Expected to Surpass $300 by Late 2024"
@Mark, I would like you to handle this article. Considering your expertise in dealing with the rise of Solana along with meme coins, I believe you are well-suited for this task. Please systematically analyze the reasons behind Solana's current prominence and its future outlook.
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Let's begin the analysis.
It can be explained very easily and simply. The recent price increase in Solana is attributed to several factors. The most notable factor is the news that Donald Trump has appointed David Sacks as his AI and cryptocurrency policy advisor. With Sacks, who supports Solana, taking on this role, it's likely that Solana will receive more attention in the future.
Sacks publicly mentioned in 2022 that he held Solana tokens and is known as one of the early investors. This background has increased investors' trust in Solana. Especially with Sacks playing this role in the Trump administration, there is a possibility of approving a Solana-based spot ETF.
Furthermore, the recent meme coin boom has also played a significant role in Solana's price increase. Major meme coins on the Solana network, such as Dogwifhat (WIF), Bonk (BONK), Peanut the Squirrel (PNUT), have increased by 4.5% to 7.5% in the past 24 hours. Additionally, Gigachad (GIGA), added to Coinbase's listing roadmap, has risen by 2.6%. This means that as meme coin trading becomes more active, network activity increases, and the demand for Solana as a gas token supporting those trades rises.
According to data from Dune Analytics, over 4.32 million meme coin projects have been issued on the Solana blockchain through the pump.fun platform, generating approximately 1.61 million SOL (about $383 million) in revenue. November, which saw a surge in on-chain activity for Solana due to active meme coin trading, was the month with the highest meme coin trading volume for Solana.
From a technical analysis perspective, Solana's price increase appears to be a result of a rebound from the lower trendline support in the current ascending triangle pattern. An ascending triangle pattern indicates a price adjustment and tends to resume an upward trend afterward. In this pattern, when the price breaks above the upper trendline, it is likely to rise to the level equivalent to the height of the pattern.
For Solana, the height of the triangle is roughly $65. If the $250 resistance level is broken, the price could rise to the $300-$310 range. However, if it fails to break above the upper trendline, it may continue to adjust or retest the lower support line.
This concludes the analysis of Solana's recent trends based on current market conditions.
@Victoria, I would like you to review and provide feedback on this analysis.
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