The cryptocurrency Solana (SOL) recently experienced a notable surge, climbing to $174, the highest price point since January 2022. This 6.70% increase set Solana apart from the broader cryptocurrency market, which saw a slight decline on the same day. Despite a minor retraction to $166 at the time of reporting, Solana’s strong performance has sparked interest in the market.
Rally Behind Solana’s Ascent
Solana’s value ascension aligns with activities associated with Dogewhatif (WIF), a memecoin project. Enthusiasts of WIF managed to fundraise $50,000, part of a larger $700,000 goal, which they used to promote the token in Las Vegas. Consequently, WIF’s value rose by 25%, with the market valuation crossing the $3 billion threshold.
The upturn in Solana’s price trajectory began soon after the Dogwifhat promotional campaign was publicized on March 10th. Since then, SOL has seen a more than 24% rise, gaining further momentum post the successful WIF fundraising event.
The enthusiasm for Solana is partly driven by the network’s embrace of memecoin projects. A study from Franklin Templeton highlighted that a significant percentage of network activities corresponded with price hikes of the popular memecoin project BONK during the last quarter of 2023.
Correlation with Bitcoin’s Performance
Solana’s recent gains also reflect a wider recovery against Bitcoin. With a 32.45% increase in the SOL/BTC pair after hitting a local low earlier in the month, Solana demonstrates a shifting investor preference from Bitcoin to other altcoins. Bitcoin’s own 65% rise this year and signs of overbought conditions on the RSI suggest that investors may be exploring altcoins like Solana and XRP, which showcase more moderate RSI values, signaling a potentially more stable market sentiment.