Following the revisit of the lower price range around $120 on 6th September, Solana [SOL] has experienced a 30% increase in its value. Currently, it is on the verge of breaking through a two-month resistance level between $162-$165, with prevailing short-term market sentiment favoring bullish outlook on the token.
Recent observations from a CryptoCrypto report also indicated a noticeable uptick in on-chain activities. Particularly, the surge in network interactions seemed to be driven significantly by the rising popularity of mem coins based on SOL, albeit not reaching the fever pitch seen back in April.
Insights from SOL’s transaction fee patterns
Comparing figures, in April the count of new addresses using the Solana blockchain averaged at 1.14 million over seven days. By 9th September, this number had skyrocketed to 3.95 million, marking a sustained growth from August into September.
Moreover, there were positive daily net inflows supported by the memecoin sector, as highlighted in CryptoCrypto’s findings.
Despite the significant increase in new addresses, weekly transaction fees remained lower compared to those in April 2024, which was the period of the memecoin craze on the Solana blockchain before a relatively subdued summer halted the rapid surges in memecoins value.
The priority fees were at a third of their peak back in April, indicating that the frenzy surrounding memecoins is yet to fully grip the Solana network. There is an expectation that Q4 2024, anticipated to be bullish, might witness a resurgence of memecoins, although not all market participants may welcome this resurgence with open arms.
Evaluating the sentiment surrounding the token
The network’s activity has shown signs of growth and whale activities are prompting long-term investors to stay invested. Short-term market sentiment analysis revealed a strong bullish stance among participants in the Futures market.
The funding rate remained high and the Open Interest has been on an upward trend since mid-September, correlating with the overall market sentiment shift following Bitcoin’s surge past the $60k mark. However, social media engagement, as of the latest data, appeared slightly negative, offering a mixed signal in the preceding ten days.