Solana Price Recovers After Transaction Scare – But Is a Bearish Trend Still in Play?
The Solana price has risen by 0.5% in the past 24 hours, moving to $132.06 on an uneventful day for the cryptocurrency market as a whole.
SOL is also down by 18% in a week, with its price struggling amid a big drop-off in usage of Solana-based meme token platform Pump.fun.
The platform, which has been one of the main drivers of Solana’s meme token ecosystem, has seen its issuance levels dive from 20,000 new tokens per day in early August to only 5,900 today.
And with meme tokens also seeing a big drop in value recently, the next few weeks may be difficult for the Solana price.
Solana’s indicators would suggest that the coin should rebound in the near future, with its 30-period moving average (orange) flattening out today after a long decline below the 200-period average (blue).
Likewise, SOL’s relative strength index (purple) has just risen above 50, after spending nearly a week in an oversold position.
Combined with the converging resistance (red) and support (green) levels, this would point to an incoming rebound.
And given the coin’s rise today, we may be at the beginning of a more bullish phase for the token.
This would be the conclusion to draw from technicals, yet the fundamental picture looks a little more mixed for Solana, which up until the start of August has had a very good year.
As noted above, it’s now possible that Solana’s popularity as a platform for issuing meme coins may be waning.
The chart above shows that daily issuance (in green) has almost fallen off a cliff in the past couple of weeks, meaning that fewer issuers are using Solana to launch their own meme coins.
In part, this stems from declines we’ve seen with meme token prices, with CoinGecko data showing that the whole meme coin sector has fallen by 13% in
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