Solana has declined by 4% in the past 24 hours, slipping to $137 as the crypto market drops by 3.5% in the wake of the US imposing 25% tariffs on car imports.
SOL remains up by 5% in a week and by 8.5% in the past fortnight, with the altcoin also suffering a 26% decline over the last 12 months.
While it has had a difficult time since January, it’s now entering a position where it could recover strongly soon, with the launch of new DEX PumpSwap last week helping to resuscitate the Solana-based meme coin market.
PumpSwap hit $1.28 billion in daily volume yesterday, with this explosion in activity suggesting that Solana could really take off once wider financial and economic conditions become favorable.
New DEX PumpSwap Gains Traction – Can it Send SOL to $1,000?
As we can see from Solana’s chart, the coin has spent most of this month in a weakened position, yet things seem to have begun picking up.
Its RSI (purple) is about to rise above 50 today, having recovered from a sub-30 level at the end of last month.
Source: TradingView
Likewise, SOL’s 30-day average (orange) has now flattened out after a prolonged declined, implying that the coin has hit a bottom and is ready to recover.
Its trading volume still isn’t particularly high, at $3.7 billion today, but it has picked up from lows of only $1.5 billion a few days ago.
But we’re still not seeing significant accumulation from whales, with the last substantial transfer being that of 1.75 million SOL to Kraken on March 26.
Still, the arrival of PumpSwap underscores how Solana’s fundamental strength still remains highly positive, with the new DEX serving to generate more trading and volume for the layer-one network.
As we can see below, PumpSwap’s daily volume has more or less doubled every couple of days since launching, although it’s still too early to tell whether today’s volume will surpass yesterday’s.
Source: Dune
The DEX has also seen over 100,000 recurring users a day since Monday, while its share of the Solana-based DEX market overtaking Raydium’s yesterday.
In the long run, this is all bullish for Solana, yet the latter isn’t going to recover fully without an improvement in market conditions.
It seems that the tariff war between the US and much of the rest of the world is now worsening rather than improving, so it may still be several weeks, if not months, before the market takes a decidedly bullish turn.
Solana may therefore have to wait until H2 to reach $200 again.
Other Solana-Based Platforms with High Potential
PumpSwap isn’t the only new Solana-based platform that’s attracting attention, with one new project in particular winning over growing numbers of investors.
This is Solaxy (SOLX), a layer-two network for Solana that has now raised $28.1 million in its hugely popular ICO.
In a market flooded with utility-free meme coins, Solaxy has been able to attract so much investment because of its strong fundamentals.
As an L2, it will provide Solana users with faster transactions and lower fees, while it will also enable instant bridging between itself and its parent network.
Its team will add compatibility with other chains over time, making it accessible and attractive to a greater number of traders and developers.
And given that SOLX will be necessary to pay Solaxy’s transaction fees, the coin could really attract a lot of demand.
Investors can join its sale by going to the Solaxy website, where SOLX is currently selling at $0.001676.
This price will rise again tomorrow, so investors should act quickly if they want to make the biggest possible gains.
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