This week, the cryptocurrency market experienced a fresh relief rally as the falling Bitcoin price stabilized above the $60000 support. Among the top assets, the SOL coin shows a notable rebound as some giant asset management companies showed interest in creating an exchange-traded fund (ETF) focused on Solana (SOL). The development has notably impacted the Solana meme coins projecting their potential for a sharp rebound.
On June 27, 2024, VanEck filed a Form S-1 Registration Statement with the United States Securities and Exchange Commission (SEC) for the VanEck Solana Trust. Moreover, 21Shares also filed a Form S-1 with the US SEC for a Solana ETF. The entrance of multiple ETFs focused on Solana can drive greater adoption and liquidity for the cryptocurrency, reinforcing its position in the market.
*21SHARES FILES S-1 FOR SOLANA ETF: BBG
— Tree News (@News_Of_Alpha) June 28, 2024
After witnessing the success of the Bitcoin ETF, the market participants reacted positively to the SOL ETF news, resulting in a nearly 10% jump on Thursday. If approved, the Solana-based meme coins may also witness a massive upswing due to their natural volatility.
Also Read: Will Solana and Ether Outshine Bitcoin in the Near Term Amid ETF Hype?
Solana meme coins- Dogwifhat (WIF)
Dogwifhat (WIF) is a memecoin that launched on the Solana blockchain in late 2023. It is inspired by a popular Shiba Inu meme featuring a dog wearing a knitted hat.
Dogwifhat (WIF)| Tradingview
Amid the renewed recovery sentiment, the correction trend in WIF price witnessed an immediate reversal from the $1.478 support. The bullish upswing lifted around 53% to hit downsloping resistance at $2.26.
The overhead trendline is leading the ongoing downfall in WIF prices. By the press time, the Dogwifhat coin trades at $2.11 with a market cap of $2.1 Billion. A potential breakout from the trendline will signal the change in market sentiment and bolster meme buyers to chase the $4.08 high.
BONK
BONK is a dog-themed meme coin built on the Solana blockchain, launched as a community-driven initiative. Amid the recent market correction, the BONK price witnessed an aggressive correction from $0.0000445 high to $0.000018 registering a nearly 60% loss.
BONK| Tradingview
However, the memecoin price witnessed an immediate reversal to $0.000023, registering a 23% jump in the past six days. The daily chart shows the BONK coin rebounded from an ascending trendline, offering dynamic support to buyers during the market dip.
As per coinmarketcap, the BONK coin maintains a market cap of $1.55 Billion, while the 24-hour trading volume fell 48% to $0.0000227.
The support trendline intact projects the investors continue to accumulate this asset at a discount which is a key sign of a stable uptrend. With sustained buying, the coin price should rally 96% and rechallenge the high of $0.000044.
Doland Tremp (TREMP)
Doland Tremp (TREMP) is a meme coin launched on the Solana blockchain in February 2024. The project centers around political satire, particularly focusing on themes related to former U.S. President Donald Trump.
Doland Tremp (TREMP)| Tradingview
As the US election campaigns heat up, the PolitiFi assets are poised to gain significant attention from crypto participants. An analysis of the daily chart shows the TREMP price is traveling a slow and stray uptrend under the influence of a channel pattern.
The Doland Tremp coin currently trades at $0.58, registering a 24-hour loss of 15%, while the market cap plunged to $58.07 Million. If the selling pressure persists, the meme coin could plunge another 40% to seek support at a lower trendline.
However, if the pattern holds true, the TREMP price is poised for reversal with the potential to surpass $1.53.
Also Read: Political Sentiment Influencing The Biden And Trump Meme Coin Prices
Key Takeaway
The S-1 filling from VanEck and 21Shares indicates a growing interest among major financial institutions in offering Solana-focused investment products. Similar to Bitcoin, this development is viewed as a massive bullish sign for Solana and its meme coins. Amid the current market correction, the dip buyers can find a suitable entry opportunity.
Frequently Asked Questions (FAQs)
An Exchange-Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges, much like stocks. ETFs hold assets such as stocks, commodities, crypto , or bonds and generally operate with an arbitrage mechanism designed to keep trading close to its net asset value.
The approval of a Solana ETF could significantly boost the value of Solana-based meme coins. Increased adoption and liquidity for Solana would likely spill over to related assets, enhancing their market visibility and trading volumes.
Meme coins are a type of cryptocurrency that is typically inspired by internet memes or cultural references and often created as a joke or for fun.
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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
