The cryptocurrency market experienced notable fluctuations as President Donald Trump’s inauguration coincided with heightened trading activity on Solana. SOL, which played a central role in the recent memecoin surge, declined nearly 18% from it’s all-time high of $293.
The introduction of $TRUMP and $MELANIA tokens on the Solana blockchain spurred a wave of speculative trading, with $TRUMP falling 60% from its peak of $79 and $MELANIA plunging over 50% before showing slight recoveries.
Liquidations Surge Amid Market Volatility
The sharp market movements resulted in the liquidation of over $700 million in leveraged derivative positions across various digital assets. In the past 24 hours alone, total liquidations exceeded $1.2 billion, marking the largest leverage reduction seen this year.
Source: CoinGlass
The correction primarily affected traders with long positions who had anticipated further price gains, highlighting the high-risk nature of speculative trading.
Coinbase Struggles with Transaction Delays
Coinbase, one of the largest cryptocurrency exchanges, faced substantial delays in processing Solana-based transactions due to the increased demand. Reports suggest that some users experienced wait times exceeding 15 hours for their transactions to process.
Coinbase CEO Brian Armstrong acknowledged the unexpected surge in activity and assured users that efforts were underway to scale infrastructure and improve transaction efficiency. Despite these exchange-related issues, Solana’s blockchain maintained uninterrupted operations, with a 100% uptime over the past 90 days.
Regulatory Scrutiny and Scalability Concerns
The launch of Trump-affiliated memecoins has drawn criticism from market participants and regulators. Experts have raised concerns about the speculative nature of these tokens and their potential to destabilize the broader crypto market. The increased trading volume has also intensified discussions about Solana’s scalability, with questions arising about the network’s ability to handle high transaction loads without compromising efficiency.
Daily Technical Outlook: Solana (SOL)
Solana (SOL) is currently trading at $237.91, with a 24-hour trading volume of $15.13 billion, reflecting a 10.24% decline over the past day. SOL ranks #5 globally, with a market capitalization of $115.18 billion and a circulating supply of 486.67 million coins.
The cryptocurrency has been facing downward pressure after failing to hold above key resistance levels, with price action now testing significant support zones.
SOL’s price is approaching critical support at $235.60, aligning with an ascending trendline and the 50-period EMA at $229.11, a historically significant support zone. A bounce from this level could indicate a recovery, with upside targets at $261.87, followed by $277.66, and a major resistance level at $295.48.
Conversely, failure to sustain support at current levels could result in further declines, with next support levels at $216.45 and $202.23, which have previously acted as consolidation zones.
Market Outlook: Technically, the market is in a consolidation phase, with price movements confined within a broad range. As long as SOL holds above $229.11, the broader trend remains bullish. As Solana faces growing pressure to scale efficiently, Solaxy offers a timely solution to enhance the network’s capacity and performance.
Solana Layer 2 Solution Solaxy Gains Momentum
Solaxy ($SOLX) is introducing the first Layer 2 upgrade for Solana, addressing the network’s ongoing scalability concerns highlighted by the recent surge in transactions following the $TRUMP meme coin launch. By handling transactions off-chain, Solaxy boosts processing speeds, reduces costs, and enhances overall network efficiency—positioning Solana for sustainable growth in the blockchain space.
Investor enthusiasm for Solaxy continues to climb, with its presale raising $12.80 million, nearing the $12.94 million target. Currently, $SOLX tokens are priced at $0.001608, reflecting robust market interest.
The project’s community engagement is also expanding, with more than 3,500 Telegram members and 61,800 followers on X (formerly Twitter), reinforcing confidence in Solaxy’s potential to optimize Solana’s infrastructure.
With its Layer 2 capabilities, Solaxy presents a strategic opportunity for investors looking to benefit from Solana’s evolving ecosystem.
Visit Solaxy Presale
Source: https://en.cryptonomist.ch/2025/01/21/solana-meme-coin-market-cap-drops-by-10-while-layer-2-solaxy-nears-13m-presale-milestone/