- Solana’s 2% rise coincided with POPCAT’s listings on two exchanges.
- Nevertheless, SOL could remain in a consolidation phase if key market conditions are not met.
Solana [SOL] has been battling a bearish trend for the past two weeks after last breaking the $200 mark about six months ago. At the time of writing, the price was trading at $145.
Despite this bearish outlook, Solana rose 2% over the past 24 hours, a jump that coincided with POPCAT’s listing on Binance And KuCoin.
On August 22, Binance launched perpetual contracts for the Solana-based memecoin POPCAT, and KuCoin listed a POPCAT/USDT trading pair on its spot market.
As a result, POPCAT rose by more than 20% after listing on both exchanges.
Considering that Solana often trusts on its memecoins during periods of market volatility: could POPCAT be the next catalyst for Solana’s rise? AMBCrypto investigates.
POPCAT’s rise in Solana is generating investor interest
Renowned analytics company Lookonchain revealed on
This underlined the increasing dominance of memecoins on the Solana network.
To better understand the impact of meme token on Solana, AMBCrypto analyzed the latest market trends. The finding revealed a number of important insights.
Source: KuCoin
On the day POPCAT officially entered the KuCoin spot exchange, buy orders for SOL were 13% larger than sell orders. Meanwhile, the overall net exchange rate flow remained negative.
Simply put, investors could buy SOL to participate in the POPCAT memecoin ecosystem, showing confidence in Solana-based projects.
Source: Coinglass
The negative net flow indicates that more Solana is being withdrawn from the exchanges than is being deposited, possibly due to the aforementioned whaling activity.
This activity may have influenced Solana’s price in a bullish direction. However, AMBCrypto investigated whether this trend could continue in the long term.
Strong conditions are needed for a guaranteed SOL peak
Since its IPO, POPCAT has risen significantly. On the daily time frame, a strong upward move has brought the meme token closer to the previous rejection level of $0.6607.
Although POPCAT has shown impressive performance on the daily chart, this does not necessarily guarantee a long-lasting impact on Solana’s price.
For such a guarantee, market conditions would have to be in favor of the altcoin.
Source: Santiment
Surprisingly, despite the recent whale activity, trading volume for the altcoin has not increased. On the day of the IPO, volume on the Solana network exceeded $2 billion; however, it has since fallen back to $1.40 billion.
Even more surprising is that weighted sentiment has shifted from extremely positive to moderately positive.
Read Solana’s [SOL] Price forecast 2024-2025
While POPCAT’s trading volume could potentially reach new highs, overall sentiment around Solana has remained remarkably neutral.
According to AMBCrypto, while POPCAT has played a crucial role in renewing investor interest in Solana, more factors are needed to anticipate a breakout.