- Solana’s 2% surge coincided with POPCAT’s listings on two exchanges.
Despite this, SOL could remain in a consolidation phase if key market conditions are not met.
As a seasoned analyst with over two decades of experience navigating the cryptocurrency markets, I have witnessed firsthand how memecoins can drive the fortunes of their underlying platforms. The recent 2% surge in Solana [SOL] following the listing of POPCAT on Binance and KuCoin is a testament to this phenomenon. However, it’s essential to remain cautious about attributing long-term price movements solely to memecoins.
As a researcher studying the cryptocurrency market, I’ve noticed Solana [SOL] has been following a downward trend for the past fortnight, having breached the $200 mark approximately half a year ago. Currently, at the time of writing, it is being traded at around $145.
Despite this bearish outlook, Solana surged by 2% in the last 24 hours, a jump that coincided with the listing of POPCAT on Binance and KuCoin.
22nd August marked the debut of perpetual contracts for the memecoin POPCAT on Binance, while KuCoin introduced a POPCAT/USDT trading option in their spot market.
As a result, POPCAT surged over 20% following the listings on both exchanges.
Considering that Solana frequently leans on its memecoins during times of market turbulence, is there a possibility that POPCAT may serve as the next driver propelling Solana’s growth? Let’s delve into this idea with AMBCrypto.
POPCAT’s rise on Solana catches investor interest
A well-known analytics company called Lookonchain recently shared on their platform (previously Twitter) that after Binance announced its introduction of POPCAT perpetual contracts, a large investor (referred to as a “whale”) transferred 39,816 Solana tokens, equivalent to approximately $5.73 million, from a centralized exchange to purchase around 10 million meme-based POPCAT coins.
This underscored the rising dominance of memecoins on the Solana network.
To get a clear picture of how meme tokens are influencing Solana, AMBCrypto examined the current market movements. This analysis brought forth some crucial points.
Source : KuCoin
On the day POPCAT officially entered the KuCoin spot exchange, buy orders for SOL outnumbered sell orders by 13%. Meanwhile, the aggregate net exchange flow remained negative.
Essentially, it could be said that investors are purchasing SOL with the intention of being part of the POPCAT memecoin’s ecosystem, demonstrating trust in projects built on the Solana platform.
Source : Coinglass
The outflow of more Solana from exchanges than inflow might suggest that a larger amount of Solana is being taken out compared to what’s being put in, which could be connected to the whale activity discussed previously.
It’s possible that this action boosted Solana’s value. But AMBCrypto questioned if this upward momentum would continue for an extended period.
Strong conditions needed for guaranteed SOL surge
Following its initial public offering, the value of POPCAT has experienced a substantial rise. On the day-to-day chart, a robust uptrend is moving the meme token nearer to its prior resistance 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 need to favor the altcoin.
Source : Santiment
To my astonishment, even with the noticeable whale activities, the trading volume for this altcoin remained unchanged. Interestingly, on the day of its listing, the Solana network’s transaction volume peaked at a staggering $2 billion; however, it has since declined to approximately $1.40 billion.
It’s even more unexpected that the Weighted Sentiment has moved from extremely favorable to somewhat favorable now.
Read Solana’s [SOL] Price Prediction 2024-2025
As a researcher, I’ve been closely observing the market trends, and while there’s a strong possibility that POPCAT‘s trading volume might soar to unprecedented heights, it’s interesting to note that the general sentiment towards Solana remains fairly neutral.
Based on AMBCrypto’s report, POPCAT has significantly rekindled investor enthusiasm towards Solana. However, additional elements must be considered to accurately predict a potential surge.
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2024-08-24 09:12