After testing the lower range around $120 on September 6, Solana [SOL] has surged by 30% in value. Presently, it is hovering at the edge of a two-month resistance level ranging between $162-$165, with prevailing short-term market sentiment towards the token notably bullish.
Recent observations from a CryptoCrypto report suggest that on-chain activities are on the rise. The surge in network activity seems to be predominantly driven by the growing popularity of SOL-based meme coins, albeit not as intense as witnessed back in April.
Insights from SOL’s fee transaction patterns
During April, the Solana network registered 1.14 million new addresses (7-day moving average). As of September 9, this figure had soared to 3.95 million, indicating a substantial surge that has remained consistent in August and September.
Moreover, daily net inflows have shown positive trends, with the memecoin sector playing a significant role in driving this pattern, as per CryptoCrypto’s findings.
Despite the notable increase in new addresses, the weekly transaction fees remained lower compared to April 2024 when the memecoin surge peaked on the Solana network, before a relatively subdued summer period curbed many of the meme coins’ rapid gains.
The priority fee stood at one-third of the peak reached in April, hinting that the memecoin enthusiasm is yet to reach its peak on the Solana network. The anticipated bullish trend in Q4 2024 might witness a resurgence in memecoins, albeit not embraced by all market participants.
Evaluating the Sentiment Surrounding the Token
Network activities appeared to be on the rise, with whale activities instilling confidence among long-term investors to maintain their positions. An examination of short-term sentiment indicated a predominant bullish stance in the Futures market.
The funding rate was considerable, and the Open Interest has been on an upward trajectory since mid-September, aligning with the overall market sentiment shift following Bitcoin’s rally past the $60k mark. However, social media interactions, as of the time of writing, displayed a slightly negative tone, creating mixed signals over the previous ten days.