Solana price has been on a tear lately, but critics say the network’s dependency on memecoins are a warning sign to keep an eye on.
Solana’s native token SOL (SOL) experienced a remarkable 16% surge between July 25 and July 29, reaching $193.92, its highest level in four months. However, the $190 resistance was stronger than anticipated, triggering a 8% correction down to the current $179 level.
Despite this short-term setback, SOL price gained 23.5% in July, though some traders fear that the downtrend may have only just begun.
To determine if the SOL price is likely to correct further, it's important to analyze whether the recent outperformance was justified—whether it was based on fundamentals, hype, or easily inflated metrics. For instance, investors placed significant hope on SOL’s exchange-traded fund (ETF) approval after Ether (ETH) instruments were approved for trading in the United States on July 22. The US Securities and Exchange Commission (SEC) has set the final deadline for the SOL ETF ruling in March 2025.
