Solana (SOL) appears poised for significant gains in the coming weeks, with technical indicators and increasing on-chain activity pointing towards a potential 65% rally. A resurgence in memecoin enthusiasm and the launch of a new decentralised exchange (DEX) are further strengthening the bullish outlook for the blockchain network.
Technical Analysis Indicates Strong Breakout
As of 26 March, Solana’s price has entered the breakout phase of a falling wedge pattern, a classic bullish reversal indicator. This pattern forms when the price consolidates within a range marked by two converging, downward-sloping trendlines, typically resolving with an upward breakout.
SOL successfully broke above its wedge’s upper trendline on 19 March and has since maintained upward momentum. Analysts now forecast a target of $235 by April, calculated by adding the wedge’s maximum height to the breakout level.
Supporting this bullish scenario is Solana’s Relative Strength Index (RSI), which has moved above the neutral 50 mark, signalling growing buying pressure. A sustained move above the 50-day Exponential Moving Average (EMA) at $154 would further confirm this breakout. However, if SOL fails to hold above this resistance, the bullish reversal could be invalidated.
Memecoin Resurgence Boosts Solana’s Network Activity
Beyond technical indicators, Solana’s on-chain activity has witnessed a sharp increase, driven by a renewed surge in memecoin deployments. More than 8 million tokens have now been launched on Solana, with daily launches rebounding significantly in March.
One of the key drivers of this trend is Pump.fun, a Solana-based memecoin launchpad, which saw over 34,000 new projects launched on 24 March. This marks a substantial increase from the 20,190 launches recorded at the start of the month – the lowest daily count since November 2024.
Historically, similar rebounds in memecoin activity have preceded major SOL price rallies. In December 2024, a similar surge in Pump.fun activity helped drive Solana’s price up by over 68%.
Top Solana memecoins and their performances as of March 26. Source: CoinGecko
This growing enthusiasm is also reflected in the strong performance of top Solana-based memecoins, with tokens such as Official Trump (TRUMP) and Bonk posting significant gains in recent days. The memecoin frenzy intensified further when Donald Trump made a social media post directly referencing the TRUMP token, sparking increased market interest.
New DEX Fuels Solana’s Bullish Momentum
Adding to Solana’s upward trajectory, Pump.fun’s recently launched decentralised exchange (DEX) has witnessed explosive growth. Since its debut on 19 March, the platform has surpassed $1 billion in cumulative trading volume, significantly boosting trading activity on the Solana network.
The impact has been immediate, with SOL’s price gaining over 15% since the DEX’s launch. Increased trading volumes and liquidity on the network further support the bullish sentiment surrounding Solana.
With both technical and fundamental indicators aligning, Solana appears to be in the early stages of a bull market. Should current trends hold, SOL could be on track to reach its $235 price target by April, marking a potential 65% gain from current levels.
