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Solana Meme Coins See Pump-and-Dump Scenario, What’s Cooking?

Solana Meme Coins See Pump-and-Dump Scenario, What’s Cooking?

During the last weekend, Solana-based meme coins witnessed yet another pump-and-dump scenario along with Solana’s native cryptocurrency SOL. In the last two days, Solana-based meme coin BONK registered strong gains jumping by more than 8% and attempting a breakout above $0.000028.

However, this remains short-lived as BONK price is trading 7.71% lower as of press time, at $0.0000242 with a market cap of $1.58 billion. Also, the daily trading volume has dropped 32.5% all the way to $273 million.

If we look at the weekly chart, BONK has been facing multiple rejections at the resistance of $0.000028. While the meme coin attempted to break above these levels, it couldn’t sustain for long. Despite the price pump over the weekend, some on-chain indicators clearly pointed out bearish signals.

For e.g. BONK’s social volume remained low while its weighted sentiment also moved in the negative territory clearly hinting that the bearish sentiment was dominant.

Photo: Santiment

In the near future, the initial potential target appears to be $0.000028, where liquidation is expected to increase, possibly prompting a price correction. Should the price surpass this level, a breakout could lead the meme coin’s price to reach $0.000030.

Another Solana-based memecoin Dogwifhat (WIF) faced a similar scenario of pump and dump. After making an upward move gaining 3.5% on Sunday, the WIF price has cracked by 3.5% trading at $2.67.

The funding rate for the meme coin has decreased, typically suggesting an impending price increase for WIF. However, its open interest has also dropped, indicating a likelihood of the current price trend shifting. Furthermore, sentiment surrounding WIF remains bearish, as reflected in its low-weighted sentiment.

Solana Price Action

Solana’s native cryptocurrency SOL has been facing strong selling pressure with the SOL price dropping by 12% on the weekly chart. As of press time, SOL is trading 5% down at a price of $135, with $130 remaining a strong support on the downside.

One of the major drawdowns for SOL price rally has been the constant rise in the supply pressure. Once the supply pressure eases up, SOL could begin its rally to $200 and above, expected by the year-end.

However, for this to happen, Solana price must sustain above the psychological mark of $150. Should SOL price reverse and surpass both the 61.80% Fibonacci level and the significant milestone of $200, the altcoin will target a new 52-week high. With the uptrend gathering momentum, there’s potential for Solana’s market value to exceed $500.

Solana Meme Coins See Pump-and-Dump Scenario, What’s Cooking?