Meme Coin Rises, But Solana Drops Nearly 6%

The meme coin rises, but Solana (SOL) drops by almost 6% (Photo; Doc. SEC.)

JAKARTA - Solana's value (SOL) has decreased significantly in the last 24 hours, although activity in its ecosystem has increased thanks to the rise of meme coins. This digital asset has fallen by almost 6% with its market capitalization dropping to 63.83 billion US Dollars (around Rp1.03 quadrillion).

Meme coins such as the Book of Meme (BOME) experienced a 10% increase in open interest this week after hitting its lowest point for four months. Another meme coin, Mog Coin (MOG), also recorded an increase of more than 20% on Thursday. MOG trading volume increased sharply, with trading volumes as of July 11 reaching nearly 36 million US Dollars (approximately IDR 582 billion), up 15% from the previous day. In addition to BOME and MOG, other meme coins known as WATER jumped 350% a day after football legend Lionel Messi promoted the token on Instagram. WATER prices rose from 0.00032 US Dollars (approximately IDR 5.18) to 0.00146 US Dollars (approximately IDR 23.61) in two hours after the Instagram post.

However, despite the surge in the Solana ecosystem, SOL itself did not experience a good week as the digital asset continued to decline along with Bitcoin (BTC) and Ethereum (ETH).

Earlier this week, the SOL value fell below the level of 141 US Dollars (approximately IDR 2.28 million) to nearly 138 US Dollars (approximately IDR 2.23 million). The increase comes less than 24 hours after it appears that sellers have lost their grip on this coin, with buyers starting to get traction. During this period, SOL recovered above the 20-day EMA characterized by 141 US Dollars. According to a Coin Speaker report, SOL has the potential to rise to SMA 50-day (151 US Dollars or around IDR 2.4 million), where strong resistance from sellers is anticipated. If the price goes down from this level, sellers will likely target a drop of up to 116 US Dollars (approximately IDR 1.8 million).

However, if prices penetrate and close above 50-day high school, it will show strong demand at higher price points. In this scenario, these digital assets can advance towards a downward trend line. To cancel the downward triangular pattern, buyers need to push prices across this downward trend line.

Meanwhile, market sentiment towards SOL remains mixed. Despite the increasing activity of meme coins in its ecosystem showing a growing community and increasing user engagement, the overall bearish trend at SOL prices reflects broader market challenges.