Is Positive Momentum Sustainable Beyond Meme Hype?

Solana (SOL) hit a price resistance level and is currently on a retracement after benefiting from the Trump meme coin frenzy. Although the price is retracing, technical indicators show positive momentum.

According to TradingView, SOL hit a resistance level
of $261 on Sunday. The trend was boosted by the launch of Donald Trump-themed meme coins, a significant addition to the network. However, the rally isn’t limited to hype; it’s
underpinned by technical indicators and institutional interest that signal the
potential for further growth.

At the time of publication, SOL changed hands for
$241, representing a 28% increase in the past week and a 2% decline in the past
24 hours. Price remains above the 50 and 200 moving averages but still below
the overbought zone at 63.

On the weekly chart, Solana soared 41% from $183 to
$260 as investors remained optimistic amid high trading volumes and speculation
about a possible Solana-based spot ETF.

Besides the positive technical indicators, Solana is
facing positive fundamental indicators. Solaxy, a layer-2 solution, has raised
over $12 million in a presale, CryptoPotato reported. The Solana-based project promises to enhance
scalability by processing transactions off-chain and bundling them to reduce
congestion on the main network.

Additionally, its compatibility with Ethereum boosts
its liquidity
Liquidity

The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent

The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent
Read this Term potential in Solana’s…