Solana’s (SOL) price recently dropped to $143, raising concerns about its recovery amid the current market conditions.

However, based on Solana’s historical performance and market trends, this could present a promising opportunity for long-term investors to accumulate SOL at this level.

Gains Ahead of Solana 

Solana’s Sharpe Ratio, a measure of risk-adjusted returns, is showing a familiar pattern. Every time the ratio turns deeply negative, Solana’s price rallies. This week, the Sharpe Ratio again dropped into negative territory, hinting at the possibility of an upward price surge. 

Historically, a negative Sharpe Ratio has signaled that the altcoin is oversold, attracting buyers and driving the price higher. This pattern could repeat itself, providing investors an opportunity to accumulate SOL before its next potential rally. As indicated by the Sharpe Ratio, the current market sentiment suggests that Solana could see renewed momentum in the coming weeks.

Read more: Solana vs. Ethereum: An Ultimate Comparison

The overall macro momentum for Solana is also showing positive signs. Initially, traders turned bearish as SOL’s price declined, anticipating further drops. However, this sentiment has since shifted, and traders have become bullish again. The renewed optimism reflects growing confidence in Solana’s ability to recover and rally.

This shift is supported by broader market conditions and the historical patterns noted in Solana’s Sharpe Ratio. The convergence of these factors suggests that Solana is in a position to regain its lost momentum and start climbing again.

SOL Price Prediction: Barriers Ahead

Solana’s price remains above the crucial $140 support level, which is a positive indicator for continued recovery. Holding this level is essential for SOL to attempt a breakout, particularly as it targets $161 once again.

Given the current market conditions and positive indicators, Solana’s price could see an uptick if it manages to break through the $155 barrier. Breaching this resistance would pave the way for a rise back to $161, marking a solid recovery for the altcoin.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

However, if Solana fails to break $155, it could experience a pullback to $140. While this would still offer short-term gains for investors, it would invalidate the bullish outlook, leaving SOL holders vulnerable to further losses. Maintaining support above $140 is key to sustaining the upward trajectory.

The Open Network (TON) has launched Memelandia, a decentralized hub aimed at expanding its meme coin ecosystem. This initiative leverages TON’s integration with Telegram to enhance meme activity on the platform.

The launch comes as meme coin activity on other blockchain networks has sparked heightened interest in these digital assets.

How Memelandia Will Boost TON’s Meme Coin Ecosystem

According to TON, Memelandia is a decentralized space where meme coin communities can thrive, compete, and innovate. It offers a unique environment for meme tokens to grow, fueled by the enthusiasm of crypto degens.

Memelandia features several key platforms that encourage collaboration and competition among meme coin enthusiasts. One of these is Launchpad Lair, where token deployers can launch new meme coins. Other areas, such as Meme Mountain and Cabal Arena, host meme battles among communities, creators, and traders. Additional platforms include Community Forest, Memecoin Armory, and the Lagoon of Digital Resistance.

On Memelandia, communities compete to grow their meme coins, driving volume, market cap, engagement, and decentralized exchange (DEX) listings. Top-performing communities are rewarded with airdrops and other incentives. The platform will also highlight tools for traders and creators, such as trading bots and launchpads. Additionally, it will offer marketing support and foster community engagement to promote meme tokens beyond TON.

“TON’s strategic position allows it to onboard Telegram’s massive audience into crypto in general and memecoins in particular. Memelandia, therefore, offers a unique space for meme coins to grow, fuelled by the creative energy of degens,” TON added.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Meanwhile, TON team explained that the move was driven by the strong communities surrounding these assets. One notable example of high meme coin activity came from DOGS. In August, over 17 million users claimed DOGS tokens, resulting in single-day transactions reaching a record 14.4 million, causing two network outages.

The surge in memecoin activity, coupled with TON’s integration with Telegram and its access to the platform’s 900 million users, has significantly boosted TON’s popularity. Indeed, TON now boasts over 11.8 million monthly active wallets and around 693,000 daily active wallets.

Outside of TON, meme coin activity has surged across other networks like Tron and Solana. Since the beginning of this year, the meme tokens have attracted growing interest from cryptocurrency investors and have thrived on ecosystems with lower transaction fees.

Read more: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Amid these trends, there are reports that institutional investors and liquid funds may soon enter the meme coin market. Su Zhu, the founder of the now-defunct Three Arrows Capital (3AC), predicted that the market might witness institutional allocation to the sector soon.

“Hearing liquid funds who had previously rejected memecoins are now being asked by LPs why they haven’t caught the moves. Institutional allocation to memecoins is likely to be the story of q4 2024,” Zhu wrote on X.

POPCAT has achieved a remarkable milestone by surging past its all-time high of $1.0094, igniting excitement among traders and investors alike. This breakout signals a powerful bullish momentum, prompting a re-evaluation of the asset’s potential for further gains. As the market reacts to this significant price movement, understanding the underlying technical factors and market dynamics is crucial for forecasting future price action. 

In this technical breakdown, we will analyze the recent surge of POPCAT past its previous all-time high of $1.0094, focusing on the technical indicators and market conditions that have contributed to this breakout. By examining key support and resistance levels, as well as the potential for a continued bullish trajectory, we will assess the implications of this price action for traders and investors. 

Additionally, the article will explore potential scenarios for POPCAT’s price movement, providing insights into what to expect in the coming days and how market sentiment may influence future trends.

Analyzing Technical Indicators After New Peak

On the 4-hour chart, POPCAT has demonstrated impressive bullish momentum, breaking above both the 100-day Simple Moving Average (SMA) and its previous all-time high of $1.0094. Reaching a new all-time high marks a critical milestone for the meme coin, as it validates the positive trend and opens the door for potential new highs.

An analysis of the 4-hour Relative Strength Index (RSI) reveals a renewed upward potential, as the RSI has climbed back to 68% after dipping to 45%. This upward shift indicates increasing buying pressure. If the RSI continues on this trajectory, it could signal more upside movements for POPCAT, paving the way for new highs, and reinforcing the bullish trend.

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Furthermore, the meme coin has fully positioned itself above the daily 100-day SMA, indicating a strong positive pressure after surpassing its all-time high of $1.0094. As the price breaks through previous resistance levels, it attracts more buyers, enhancing the likelihood of a sustained uptick and fortifying the overall optimistic outlook for POPCAT in the near term.

Also, the RSI on the daily chart is currently at 74%, having previously dropped to 59%. An elevated RSI level implies that POPCAT is in overbought territory, reflecting strong buying pressure and heightened enthusiasm in the market. While such high readings may signal potential exhaustion in upbeat momentum, the lack of immediate indications for a pullback shows that bullish sentiment remains strong.

Support And Resistance Levels: Navigating The New Terrain For POPCAT

Support Levels: The immediate support level to watch is the $1.0094 mark, which may act as a psychological level for buyers. Should it fall below this range, the next significant support could be found around the $0.80 mark, serving as a strong base for possible rebounds.

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Resistance Levels: On the upside, the next resistance level can be anticipated at around $1.5, where sellers may emerge to take profits. If POPCAT manages to breach this level, it could lay the foundation for further gains, potentially targeting $2 and beyond.

Featured image from YouTube, chart from Tradingview.com