Solana seems to be turning back the clock back to early 2023 when it would display explosive growth even as the rest of the crypto market struggled.
The Solana price has rallied 17% from its local bottom of $119, trading as high as $140 on Thursday. On the contrary, Bitcoin and Ethereum have bounced back up by just over 2% on the daily time frame.
Solana’s outperformance gives credence to the claims that it will remain the most bullish cryptocurrency for the rest of the bull market, as it has been so far.
SOL’s resurgence has provided a boost to Solana meme coins and other Layer-2 tokens. For instance, a new meme coin Sealana ($SEAL) has raised close to $150k in its ICO in less than a day.
Why Is Solana Price Up Today?
Solana has faced strong selling pressure over the past month, declining by over 36% in that period.
However, analysts continued to highlight that the bearish trend in Solana had nothing to do with any weakness in its ecosystem. Rather, it was part of the broader crypto market crash, largely due to the increasing macroeconomic risks and geopolitical tensions.
This became clear after Wednesday's FOMC meeting. The US Federal Reserve did not move ahead with any interest rate cuts, however, this was already priced in by the market.
More importantly, Fed Chair Jerome Powell struck a dovish tone in his FOMC speech. Firstly, he rubbished the claims of a further increase in interest rates, claiming that it is unlikely that the next move by the central bank is a rate hike.
Secondly, Powell revealed that the pace of Quantitative Tightening will also slow down in June, announcing a Treasury Buyback program for the first time since 2002.
FED keeps rates unchanged.Not the most important part, the speech of Powell regarding potential rate cuts is going to be important to watch for #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) May 1, 2024
As a result, the US stock market and the more volatile crypto market are seeing a bounceback.
Solana, in particular, has outpaced the rest of the market. Analyst Nebraskangooner reveals that SOL accomplished several impressive feats from a Technical Analysis perspective post-FOMC.
It printed a 15-minute bullish reversal pattern, followed by a breakout and successful retest of its 1-hour resistance trendline.
$SOLClean breakout and retest but FOMC was the catalyst and could've gone either way depending on what was said.Pretty clean from a TA perspective though https://t.co/re7Jc5Ea8k pic.twitter.com/KHwXOhbiVb
— Nebraskangooner (@Nebraskangooner) May 1, 2024
One factor behind SOL’s outperformance could be the bullish strength displayed by meme coins today. Considering that Solana meme coins have been the asset class of choice for most crypto traders, the native SOL token is also delivering outsized returns.
Crypto whales could simply be buying Solana to later swap into meme coins.
Is Sealana The Next Big Solana Meme Coin?
The meme coin market is no longer the monopoly of doge or frog-inspired tokens. Recently, cats, sloths and now seals are in the spotlight.
A new Solana meme coin Sealana is capturing the imagination of investors and smart-money traders. Thanks to its hilarious and relatable portrayal of a seal-based crypto degen, the meme coin has raised close to $150k in its ICO.
The meme coin is already making the rounds of popular crypto publications, including Crypto Potato. Additionally, popular YouTubers such as Crypto Zeus, who has more than 75k subscribers, are impressed with its price potential.
Popular YouTube channel Cryptonews also reveals the possibility of Sealana potentially offering up to 100x returns.
Following in the footsteps of Slerf, Sealana has adopted an innovative presale model, allowing investors to send $SOL tokens directly to the project wallet. For every Solana sent, investors will receive 6900 Slothana tokens in return as an airdrop.
The Sealan wallet address is DJ15ZYXqUNMYJ3hL7z4ciSaSFAw5cbos3YjGpdvwmF6c.
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