SOL reached an all time-high of $293 on January 19, before falling to $263 today. Solana’s recent network congestion issues have also raised concerns among investors following the highly publicized launch of $TRUMP and $MELANIA meme coins. The surge in trading volume, driven by speculation surrounding President-elect Donald Trump’s administration, highlighting the blockchain’s ongoing scalability challenges.
Meme Coin Hype Strains Solana Network
On January 18 and 19, the official $TRUMP and $MELANIA tokens launched on Solana, creating a surge in network activity ahead of the January 20 inauguration.
However, reports indicate that the blockchain explorer Solscan experienced delays, with no new transactions recorded for 30 minutes, prompting users to express concerns over Solana’s ability to handle increased traffic. Despite these setbacks, Solana has maintained a 100% uptime in the past 90 days, with no major outages since February 2024.
Daily Technical Outlook: Solana (SOL) – January 20, 2025
Price Overview: Solana (SOL) is trading at $263.00, with a 24-hour trading volume of $35.22 billion, marking a 10% decline over the past day. Solana ranks #5 globally, with a market capitalization of $129.02 billion and a circulating supply of 486.58 million SOL.
Key Technical Analysis: SOL’s price remains supported by the 50-period EMA at $239.88, aligning with the ascending trendline. This level serves as a key support zone, indicating potential bullish momentum if SOL holds above $238.00.
Immediate resistance is at $277.66, with further upside potential toward $295.48 and $311.40, should buying pressure continue. On the downside, a break below $263.00 may lead to retests of $239.88, with deeper corrections possible toward $220.19 and $205.80.
The technical structure suggests a consolidation phase between $238.00 and $277.66, with potential breakouts driven by increased market activity. The ascending trendline provides further support for a bullish outlook.
Solaxy: Enhancing Solana’s Performance with Layer 2 Solution
Solaxy ($SOLX) is introducing Solana’s first Layer 2 blockchain, designed to tackle the network’s persistent scalability challenges. The recent surge in transaction activity, fueled by the $TRUMP meme coin launch, highlighted Solana’s limitations, prompting greater interest in scalability solutions. Solaxy aims to address these issues by processing transactions off-chain, significantly improving speed and reducing costs while maintaining the security of the Solana mainnet.
Investor confidence in Solaxy’s potential continues to grow, with the project raising $11.95 million in its presale phase. The token, priced at $0.001606, has attracted a rapidly expanding community, with 3,000+ members on Telegram and 60,000 followers on X (formerly Twitter).
As Solana works to enhance its scalability, Solaxy presents an opportunity for early adopters seeking to capitalize on the blockchain’s long-term growth potential.
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