Memecoin Frenzy Boosts Solana Price For a Rally Past $300

During Monday’s U.S. trading session, the crypto market experienced a downturn. The selling pressure followed investors’ uncertainty around the Chinese AI advancement ‘DeepSeek.’ Thus, the Bitcoin price teased another breakdown below $100k and bolstered selling pressure among top altcoins like SOL. However, the Solana price shows potential for a quick rebound amid a surge in onchain activity.

Key Highlights:

• Solana Price is 4% short from a bullish breakout of weeks-long flat button formation.
• The Solana blockchain generated $203 million in fees during January, significantly outpacing Ethereum’s $132 million..
• The coin price sustaining above 50% Fibonacci retracement level and 200-day exponential moving average hints the broader market sentiment is bullish.

Solana Dominates Memecoin and DEX Markets in January 2025

The layer-1 cryptocurrency, Solana, recorded significant onchain activity in January 2025, emerging as a leading hub for memecoins and decentralized exchanges (DEX). One of the key highlights is the impact of TRUMP, a memecoin that gained traction with a fully diluted valuation (FDV) peak of $75 billion. 

While the SOL network witnessed a ~$0.41 average transaction fee during the Trump memecoin surge, the blockchain holds a user base with low fees and fast transactions. This month, Solana generated $203 Million in fees, outpacing Ethereum’s $132 Million.

According to The BLOCK PRO data, Solana’s DEX volume surged to $226 Billion, surpassing the next ten blockchains combined for the fourth straight month.

Solana Price Hints Breakout Past Flag Pattern

Over the past 8 days, the Solana price has witnessed heightened volatility, struggling to sustain above the $265 resistance. The daily chart candles, with long-week rejection on either side, indicate no clear dominance of buyers or sellers.

However, a look at a low-temperature chart shows the consolidation resonated strictly within two converging trendlines, indicating the formation of a bull flag pattern. Theoretically, this chart setup provides a temporary pullback for buyers to reincorporate the bullish momentum.

If the pattern holds true, the Solana price would breach the overhead resistance at $247, bolstering a 50% leap to the $350 target.

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