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A recovering memecoin sector and the launch of a new DEX are boosting Solana’s bullish outlook for the coming weeks.
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Solana (SOL) price is gearing up for a significant uptick in April, driven by positive market indicators and a resurgence in memecoin enthusiasm.
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According to Mr. Flash, a notable trader on social media, “The technicals are aligning perfectly for SOL, especially with the recent bullish breakout.”
Solana’s recent price movements and the revival of memecoins signal a potential rally, with key technical indicators supporting a bullish outlook for April.
Technicals show 65% SOL price rally in play
As of March 26, SOL’s price had entered the breakout stage of what appears to be a falling wedge pattern. This classic chart formation often indicates a reversal in trend, suggesting that SOL may be poised for considerable gains.
A falling wedge forms when the price consolidates inside a range defined by two converging, descending trendlines. The breakout occurs when prices breach the upper trendline, which SOL did on March 19, confirming the bullish sentiment among traders.
SOL/USD daily price chart. Source: TradingView
Since breaking above the wedge’s upper trendline, SOL has maintained strong upward momentum, rising consistently in the days following the breakout. The current target for the SOL/USD pair stands at $235, determined by adding the height of the wedge to the breakout point, which is expected to materialize by April.
Source: @THEFLASHTRADING
Furthermore, momentum indicators are showing promising signs. The relative strength index (RSI) has moved above the neutral 50 mark, which historically points to increasing buying pressure. A decisive move above the 50-day exponential moving average (50-day EMA; the red wave) at $154 could further solidify this bullish trend. Conversely, a pullback from the EMA may indicate that the bullish reversal could be at risk of invalidation.
Solana memecoin sector is in recovery
Beyond the charts, Solana’s on-chain activity indicates a significant uptick in memecoin enthusiasm. Over 8 million tokens have been introduced on Solana, with daily deployments rebounding sharply in recent weeks.
A standout example of this resurgence is the Solana-based memecoin launchpad, Pump.fun, which facilitated the launch of over 34,000 projects on March 24, marking a stark increase from approximately 20,190 launches earlier in the month – the lowest recorded daily count since November 2024.
Total projects deployed via Pump.Fun. Source: Dune Analytics
This spike in memecoin launches closely mirrors the recovery seen in December 2024, occurring just after a period of market stagnation. Historical data suggests that a resurgence in memecoin activity has often preceded substantial SOL price rallies, with previous instances resulting in price increases of over 68% following similar patterns.
SOL/USD daily price chart. Source: TradingView
The resurgence is not exclusive to project launches; it’s also reflected in the remarkable performance of leading Solana-based memecoins, which have recorded significant price increases recently. Notables include Official Trump (TRUMP) and Bonk (BONK), both of which have captured investor interest.
Top Solana memecoins and their performances as of March 26. Source: CoinGecko
The excitement surrounding Solana’s memecoin landscape intensified over the weekend when former President Donald Trump shared an online post explicitly endorsing the TRUMP memecoin, which led to a surge of interest across the sector.
Additionally, the newly launched decentralized exchange (DEX) on Pump.fun has already surpassed $1 billion in cumulative trading volume since its launch on March 19. This influx of activity provides a further boost to the Solana network and is believed to be a contributing factor behind SOL’s recent price increase of over 15%.
Conclusion
In summary, the combination of favorable technical indicators, a recovering memecoin market, and increased trading activity on Solana’s new DEX paints a promising picture for SOL as we head into April. For investors, this could be a pivotal moment to watch as the dynamics evolve and market sentiments shift. Keep an eye on the key resistance levels and market trends; the evolving landscape could offer significant opportunities ahead.
