Solana Price News: SOL Needs to Stay Above $120 to Keep the Rally Going

SOL encountered significant buying volumes at around $93 per token after Donald Trump backpedaled on his decision to raise tariffs on goods coming in from all countries.

Meanwhile, FART stands as the best performing meme coin of the top 10 in the past month with gains of nearly 200%.

The lack of practical use, cash flows, or any kind of fundamentals whatsoever were no obstacle for market participants to push this token to the 6th place in the list of most valuable meme coins with a market cap of $905 million.

FART Could Flip BONK Soon

FART is now just $12 million away from capturing the fifth place as it would flip Bonk (BONK), another Solana-based meme coin. If this happens, it would also make the token the second most valuable asset in this category within the Solana ecosystem, only outpaced by Official Trump (TRUMP), whose market cap currently sits at $1.6 billion.

Can FART beat TRUMP and become the number one meme coin in Solana? That would certainly add an ironic twist to what has been a chaotic year.

Data from DeFi Llama shows that spot volumes across Solana’s decentralized exchanges (DEX) like Raydium and Orca have surged by 28% and 11% in the past 7 days.

Nearly 30% of FART’s spot volumes go through Orca while Bybit and Binance handle the most volumes on the perpetual futures market.

Meanwhile, trading volumes across all DEXs have gone up from $8.3 billion during the week ended on March 23 to over $15 billion by the end of last week.

FART’s positive performance recently has spilled over to other meme coins like BONK, POPCAT, and WIF as they have delivered gains of 18%, 12%, and 88% in the past week.

SOL Risks Huge Drop if It Drops Below its POC

Looking at the daily chart, SOL managed to rise above the $120 level in the past few days. This is a key area to watch for traders as the point of control (POC) sits between $120 and $125.

This means that most of SOL’s annual volume has taken place at these levels. Hence, any move above or below this area could provide intel on where the market is heading. The last time that SOL broke below $120, the price dropped to $96.

Bears are still in control of the price action as reflected by SOL’s descending price channel. Although the price has temporarily broken the upper bound of the channel, it is still too early to tell if this is the beginning of a trend reversal.

Momentum indicators are favoring a bullish outlook as the Relative Strength Index (RSI) has climbed above the 14-day simple moving average, which is typically considered a buy signal as positive momentum has picked up its pace.

Meanwhile, the MACD is in positive territory. However, it has already declined for the second day in a row during today’s drop.

Another encouraging sign favoring a positive outlook is a break above the 21 EMA, which is an early indication of a trend reversal.

Most of the technical indicators in the daily chart point to what could be the beginning of a reversal. However, the macroeconomic backdrop is quite bearish and sentiment is heavily depressed.

Hence, as it has happened many times recently, these false positives could result in a significant drop. Losing the $120 support again could result in a retest of the $100 level or could even push the token to lower lows as it would show that the bear market is still raging on.