Solana Price News: SOL Momentum Picks Up as FART Hype Pushes DEX Volumes Higher

While other cryptos like XRP (XRP) and Ethereum (ETH) have shed 0.6% and 0.8% of their value during this same period, SOL’s uptrend shows the significant influence that meme coins have in its ecosystem.

Fartcoin (FART) has seen its market price skyrocket by 248.1% in the past month without a specific reason.

The token has no utility and its online community has a limited size compared to other tokens in this category like Shiba Inu (SHIB) and Dogecoin (DOGE).

FART Reverses Downtrend in Solana’s DEX Volumes

FART was launched in October last year. The most popular X account created for the token has less than 70,000 followers. Comparatively, Shiba Inu’s and Dogecoin’s official accounts have millions of followers.

However, as it tends to happen with tokens that become viral sensations, retail traders start to FOMO it and manage to pull a series of short-squeezes that ultimately catapult the price to unprecedented highs.

Despite its latest climb, FART is still trading 66% below its all-time high.

Data from CoinMarketCap shows that top Solana decentralized exchanges like Raydium and Orca currently handle 30% of FART’s trading volumes in the spot market. Meanwhile, Binance launched FART perpetual futures back in December last year during one of its mind-blowing rallies.

Meanwhile, Solana’s DEX trading volumes rose last week by nearly 30% to $13 billion and could end the week at a similar level based on a run rate of where they stand now.

This implies a trend reversal as volumes tanked after they reached record levels in January when TRUMP and MELANIA were launched on the Solana blockchain.

FART’s rally could be the most important catalyst fueling SOL’s rise in the past few days. If the token experiences a decline at some point, it could endanger SOL’s recovery.

Strong Buying at $95 – $110 Ignites Rally

Looking at Solana’s daily chart, the price has bounced off a key trend line support recently as buying volumes around the $95 and $110 area seem strong.

Momentum indicators have sent a buy signal as the Relative Strength Index (RSI) has crossed above the signal line while the MACD’s histogram has moved to positive territory.

Strong demand at these levels suggests that SOL could have hit a local bottom. Aided by FART’s rally, the token will likely retest its trend line resistance at $126 per coin meaning a 6% upside potential from current levels.

The macro backdrop continues to be quite unfavorable as Trump’s hostile measures have resulted in significant downward pressure for financial assets.

However, market sentiment has improved in the past couple of days as reflected by the Fear and Greed Index, which moved from a record low of 15 to 21 at the time of writing.

Entering a long position at this point seems risky. Short-sellers continue to have the upper hand in this environment as multiple variables favor further drops ahead for SOL.

A sharp drop in the price of FART could be the tipping point for this recovery. Hence, it is worth keeping an eye on how this meme coin performs in the next few days. In the past, these unjustified rallies have been met with correspondingly huge declines.

When that happens, FART will likely drag SOL as DEX volumes will once again dry up.