Solana Price Prediction: DEX Volumes Explode as Meme Coin Hype Comes Back – SOL to $160?

Solana (SOL) has booked an 8% gain in the past 7 days, even though the token has retreated in the past 24 hours.

The price briefly hit the $140 mark, but selling pressure started to increase as the market could be due for a breather.

SOL has rallied in 10 out of the last 12 trading days, following a strong bounce off the $120 support area.

Trading volumes across Solana’s decentralized exchanges have exploded in the past week. According to data from DeFi Llama¹, DEXs have booked a 39% weekly jump in volumes, possibly as top meme coins like Fartcoin (FARTCOIN) and Bonk (BONK) are back on track.

BONK booked a 50% gain in the past 7 days while more exotic tokens like Useless Coin (USELESS) rose by more than 80% during this same period. As a result, the combined market value of Solana meme coins has surpassed $6 billion.

Volumes closed last week at $30 billion, meaning a 25% jump compared to the week before. Meteora and Pump.fun currently account for the largest share of volumes in the past 24 hours, with $2 billion each.

These are meme coin launchpads that collect fees as new tokens are created and traded through their respective Solana-based platforms.

All of this activity translates into higher transaction volumes to the Solana blockchain as the latter acts as the definitive settlement chain for these protocols.

Pump.Fun’s Daily Trading Volumes Hit New Record

Notably, Pump.fun booked its highest single-day volumes at $2 billion, although trading fees are still relatively low.

Fees are often the primary driver for an increase in $PUMP’s price. If these higher volumes translate into a larger number of tokens being created through the platform, that could result in a significant price expansion for this platform’s native asset.

Despite this uptick in DEX volumes, we can still see that weekly transactions remain heavily depressed compared to the days when SOL was rising above $180. Back then, weekly transactions peaked at 816 million in late July.

The price went on to climb to $240, but that uptick became unsustainable as transactions started to drop sharply.

Data from Artemis² shows that weekly transactions currently sit at 487 million, or 40% below that recent peak. Hence, unless we start seeing network activity pick up dramatically, SOL’s latest recovery could still be categorized as a bear market rally.

SOL Reversed Its Downtrend, But How High Can It Go?

After breaking out of its falling wedge, Solana seems headed to retest the $160 area. This is a level where a former area of support and the 200-day exponential moving average (EMA) are in confluence, which increases its technical relevance.

SOL/USD Daily Chart (Binance) – Source: TradingView

Despite today’s 3.6% drop, SOL’s outlook in the near term continues to be bullish as the token broke its bearish price structure. The Relative Strength Index (RSI) also climbed above the 14-day moving average and the mid-line, which confirms a buy signal.

If the price rejects the $160 area, this would confirm that we are in front of a relief rally, not a bull market. However, if we get a bullish breakout above the 200-day EMA, that could set things in motion for a retest of the $200 area.

For that to happen, transaction activity would have to recover above 600 million at least.