NOIDA (CoinChapter.com)— Solana trading volume outperformed its rival blockchain, Ethereum, with help from the recent memecoin frenzy. Despite the memecoin fervor calming down over the past week, Solana-based memecoins continue to attract traders.
Specifically, some of the top Solana memecoins, such as Dogwifhat, Bonk, Myro, etc., continued their weekend rally on March 18. Excitement over the memecoins likely helped SOL price spike 87% in March 2024.
The interest in Solana memecoins, combined with presales, helped spike the total trading volume on the blockchain.
On March 15, Solana daily trading volume reached a new all-time high of $3.8 billion. The next day, the SOL recorded a trading volume of nearly $3.5 billion, about $1.2 billion more than that of Ethereum on March 16.
Moreover, Solana continued outperforming Ethereum on March 18, with a trading volume of $3.02 billion against Ethereum’s $2.04 billion.
Notably, while outperforming Ethereum in trading volume is an achievement in itself, the return of Solana’s prodigal son (network congestion) not mucking up SOL’s bull run speaks volumes (pun intended) of the investor interest in the blockchain.
Moreover, the SOL price rally has helped the token garner major interest on social media in the past 24 hours, according to data from Santiment.
SOL Price Moving Inside Bullish Pattern With Massive Target
Solana memecoins attracting traders to pump the SOL trading volume could help in a bullish breakout for the token. SOL price is moving inside a bullish technical pattern called the ‘Ascending Triangle.’
Historically, a horizontal trendline connecting swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine whether a breakout is strong. Under ideal conditions, buyers would enter the market as the trendlines close the gap.
As a result, the token’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, SOL price has a theoretical price target near $43,240, a spike of over 21,177% from current levels.
It is unlikely that SOL price would rally immediately to the pattern’s target after a successful breakout. Yet, the pattern could attract buyers to the market, helping SOL continue its bull run.
Solana Trading Volume: Bulls Ignore Overbought RSI
SOL’s recent bull run pushed the token’s RSI into the overbought region, with a score of 89.08 on the daily charts. The RSI is a momentum indicator measuring asset price movements to identify overbought or oversold conditions.
Moreover, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.
As such, SOL price could drop to the support near $180 if the rally succumbs to profit booking. Moreover, breaching the immediate support level might result in the Solana token testing the 20-day EMA (red wave) support near $145.
On the other hand, a continued rally might help SOL price rise to the 0.618 FIB resistance near $239. If bulls successfully flip the resistance, the token could target the resistance near $284 before corrections pare gains.
