Solana meme coins continue to witness stupefying growth despite the market not supporting the bullish sentiment.
Joining this list is a token which, on a daily basis, witnesses towering rises and shocking falls.
What are the Concerns With This Solana Meme Coin?
Solana meme coin Sharbi (SHARBI) is this week’s top performer in the Solana ecosystem, as the crypto asset marked a 1,184% rise over the last seven days. These meme coins have been a point of attention for days now, with most investors using them as a get-rich-quick medium.
However, those who think these tokens have anything to offer must know that this is not the case. Sharbi has a liquidity of 0.13% against its market capitalization of $4.57 million. Over the last 24 hours, the Solana meme coin has registered $6,258 in trading volume across all exchanges.
The scant trading volume indicates minimal organic interest in the token, while its low market capitalization renders it susceptible to extreme volatility.
Read more: 11 Top Solana Meme Coins to Watch in August 2024
The crazy daily rise and fall noted in the case of this token is largely due to the hype surrounding these risky tokens. Another reason contributing to the meme coin’s rise is the recent migration of Sharbi to a new contract and the airdrop that accompanied it.
Nevertheless, investors should refrain from jumping into tokens with such liquidity. If the market crashed, SHARBI holders would have minimum chances of cashing out.
SOL Price Prediction: Volatility Halts
Solana’s price is most likely to move sideways going forward. The stabilizing market has led to a decline in overall volatility, which could keep SOL above the support of $137.
This consolidation could build bullish momentum to trigger a recovery rally in Solana’s price. A successful rally could send SOL to $156, and breaching it would help the altcoin recover a chunk of its 30% drop from late July.
Read more: 6 Best Platforms To Buy Solana (SOL) in 2024
However, the consolidation will continue under the $156 resistance level if the breach fails. This would invalidate the bullish thesis of recovering old losses.
Disclaimer
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Source: https://beincrypto.com/solana-meme-coin-rose-despite-bearish-market/