The cryptocurrency president has recently signed a series of executive orders in support of the crypto industry, leading to a strong recovery in the altcoin market. This positive momentum has allowed SOL’s price to bounce back from the crucial $240 support level, while key on-chain metrics have shown improvement. The surge in transactions on the SOL network, approaching a monthly high, is driving the price of SOL towards the $300 mark by the end of the month.
Trump Memecoin Sparks All-Time High for Solana’s Stablecoin Supply
The introduction of the Trump meme coin has played a significant role in the recent price recovery of SOL. The resurgence of crypto advocate Donald Trump, along with his executive orders, has propelled Solana’s stablecoin supply, transaction volume, and total value locked (TVL) to unprecedented levels.
According to data from The Block, the number of transactions on the Solana network is on the verge of reaching its highest monthly peak of 291.6 million, currently standing at 289.75 million, indicating a surge in network activity.
Over the past week, the amount of stablecoin within the Solana ecosystem has experienced exponential growth, nearing $11 billion for the first time and establishing a new all-time high.
The surge can be largely attributed to the popularity of Trump-themed meme coins, particularly the Official Trump (TRUMP) and Official Melania Meme (MELANIA) coins. These coins have attracted billions of dollars in investment and brought in hundreds of thousands of new users to Solana in recent times.
Consequently, the daily creation of new Solana wallet addresses has reached almost 5.2 million, with the active address count on the SOL network currently at 5.3 million.
DefiLlama data reveals that the surge in memecoin enthusiasm within the Solana network has also led to a significant increase in the total value locked (TVL).
Since January 24, 2024, Solana’s TVL has skyrocketed from $1.28 billion to $12.44 billion today, marking an astounding 870% increase since the beginning of the year and a 25% rise in just the past week.
Future Outlook for SOL Price
Solana’s price is currently holding firm above a critical level on its chart, indicating buyer confidence. While it strives to maintain levels above $260, resistance from sellers is preventing significant price hikes. At present, Solana is priced at $266, following a 7.9% increase in the last 24 hours.
The SOL/USDT trading pair is positioned above $265 and could potentially surpass nearby Fibonacci levels. With the Relative Strength Index (RSI) currently at 60 in the buying zone, there is a likelihood of Solana’s price climbing above $290. Sustaining levels above $290 could be advantageous for buyers, potentially propelling the price towards $310.
However, if the price dips below the 20-period Exponential Moving Average (EMA20) on the 1-hour chart, sellers may drive it down towards $233.
