SOL Price Forecast: Solana hits 85-Day Peak as Memecoins Pull 9 Million New Users in 24-hours

SOL Price Analysis:

On Thursday Oct 24, Solana price broke above $175, bringing its 7-day timeframe gains to 18.3%. On-chain data shows unusually high number of new users joining the Solana blockchain network this week amid rising demand for memecoins.

Could this propel Solana above the $200 mark in the weeks ahead?

Bulls Breach $175 Territory first time in 85-Days

The global crypto market has been subject to intense volatility this week, as a Bitcoin’s correction towards $65,000 triggered massive sector-wide derivatives liquidations. However, while major Layer-1 altcoins like Bitcoin (BTC) and Ethereum (ETH) tumbled to new weekly lows, Solana price showed resilience.

Solana’s daily price action charts above shows have SOL price had advanced above the $165 level, decoupling from the sector-wide correction phase between Oct 20 and Oct 24.

In the early hours of Oct 24, Solana price breached the $175 level, trading at its highest in 85-days dating back July 31, 2024. Effectively, as demand returned to the crypto markets on Thursday, Solana has now rapidly extended its weekly timeframe gains to 18.63%.

Why Solana Price Going Up ?

When price of a mega-cap asset like Solana outperforms the broader sector average, it often signals the presence of a separate internal bullish catalyst. In this case, recent media reports suggest rising demand for newly-launched memes hosted on the Solana blockchain has been pivotal to the native SOL coin’s market-leading performance on Oct 24.

Solana Sets Record as 9M New Users Join in 24-Hours

While the global crypto markets entered a correction phase on Monday, the Solana memecoin sector continued to find buyers.

According to FXEmpire reports, prominent Solana memes like POPCAT, and Cat in a Dogs World (MEW) maintained 11% weekly timeframe gains respectively, while Goatseus Maximus (GOAT), created on Oct 10, scored 163% weekly gains, propelling its market cap above $650 million within 14-days post-launched.

This suggests that savvy traders seeking out profitable opportunities during the market dip had flocked towards the Solana memes. This has inadvertently spurred demand for SOL, as traders require the native coin to mint, transfer tokens, pay network fees and interact on the blockchain.

Confirming this narrative, Daily New Signers chart above is from Solana-native on-chain data tracker Hellomoon. It monitors the total number of new wallets that conduct their very first transactions on a given day, serving as a proxy for measuring the number of new users joining the network.

According to the HelloMoon charts, Solana blockchain network attracted 8.81 million daily first singers on On Oct 22, setting an all-time record for the number of new users transacting within a day.  Notably this is also a staggering 900% higher than the 1 million daily signers recorded during the previous market top back in March 2024.

Hence, this indicates that while rest of the crypto market wobbled under intense downward volatility,  a large number of crypto traders switched focus to the Solana memecoin markets to seek profitable opportunities. This partly explains why Solana price had continued on an uptrend this week, while the broader crypto market retraced.

However, given the highly media-sensitive nature of memecoins it remains to be seen if crypto traders will sustain the rave as the rest of the crypto market enters a recovery phase.

Solana Price Forecast: Multiple Hurdles Ahead Before $200 Breakout

Solana (SOL) has been one of the standout performers in the crypto market this week, driven by a surge in activity within the memecoin sector and record-breaking new wallet signers.

However, SOL price may be approaching exhaustion point, with a potential correction phase toward $160 level looming before it attempts to break through the crucial $200 level.

Technical indicators on the SOLUSD daily chart shows that Solana’s bullish momentum this week has been supported by a Golden Cross, which occurred on October 13, where the 20-day EMA crossed above the 50-day EMA.

However, the market may soon cool down as the RSI currently sits above 70, signaling overbought conditions. This suggests the upward trend might be nearing exhaustion, and a short-term correction is likely, especially if traders look to take some profits.

In terms of key Solana price levels to watch, bears could mount a major sell-wall at the $193 territory, likely halting a $200 breakout in the near-term. On the downside, strong support at $150, backed by the 50-day EMA, provides a safety zone where buyers could step in.

In summary, while Solana has outperformed the market average this week, technical indicators hint at an imminent correction. A dip toward the $150-$157 range could create a strong setup for the next rally.