Solana Memecoin Weekly Update #1

Ethereum ETF approval, rumors of a SOL ETF, and $PEPE hitting an all-time high—there’s a lot to unpack in our first weekly meme coin update.

Welcome to SolanaGeek, a Solana blog aiming to help degens navigate the meme coin world on Solana. Instead of just calling out meme coins, our goal is to teach you how to pick the right ones yourself. Think of it as teaching you how to fish rather than just giving you a fish.

This week, we’re going to cover:

• Macro Updates
• The Overall Meme Coin Ecosystem
• Solana Meme Coins To Watch

Ready to get started? Grab a cup of coffee, and let’s dive into the macro updates! 👇

Part 1: Macro Updates

The recent surge in Ethereum’s price leading up to the highly anticipated ETF approval has provided significant data to analyze on the ETH/BTC dominance chart. It’s important for us to understand these macro trends in crypto, because meme coins tend to follow the broader market movements. When majors like SOL and ETH pump, its highly likely that meme coins will follow suit. Let’s dive into it.

Understanding the Charts

Indicators by Trading Alpha

• Green/Red dots: Micro bullish/bearish trend
• Green/Red candles: Macro bullish/bearish trend
• Green/Red arrows: Signals strong bullish/bearish momentum.
• Top Candles: Orange candles labeled with a T. Signal a potential local top.
• Bottom Candles: Blue candles labeled with a B. Signal a potential local bottom.
• Reversal Candles: Bullish reversal = Turquoise, Bearish reversal = Yellow

ETH/BTC: Weekly

This is exciting! The ETH/BTC chart shows a promising trend reversal. After being in a downtrend for nearly 90 weeks (623 days), we are now seeing a massive reversal candle (R) following a bottom candle (B). This pattern is extremely bullish for ETH. If we can close the weekly candle above the sloped resistance, it could signal the start of a major upward movement.

BTC/USD: Daily

Bitcoin seems to be within this blue channel. We haven’t quite touched the bottom of it, so expect a clean test of this bottom end. Overall, we have green bars and green dots which indicates a bullish macro trend!

However, a critical resistance level at $71.6k remains. We’ve encountered numerous top signals in this range, so breaking through this resistance cleanly would pave the way for new ATHs.

This setup suggests that while short-term fluctuations might occur, the overall outlook for Bitcoin remains positive, with the potential for significant upward movement if key resistance levels are broken.

ETH/USD - Daily

Ethereum has been hovering just below the psychological resistance level of $4,000 since the initial news about the ETF approval. The Relative Strength Index (RSI) indicates that Ethereum is currently overextended, suggesting a potential dip in the short term. However, any dip should be viewed as a buying opportunity given the long-term bullish outlook due to the ETF approval.

It’s important to focus on long-term expectations rather than day-to-day price fluctuations. Historical patterns show that Bitcoin also experienced dips following its ETF approval but has performed significantly better in the long run.

SOL/USD - Daily

Solana is looking healthy and is currently trading within a well-defined blue channel. The presence of green bars and dots indicates ongoing bullish sentiment. Recently, SOL bounced off the track line and the bottom of the channel, suggesting strong support at these levels.

We can expect SOL to continue its upward trajectory towards the middle of the channel, targeting the next resistance point, and potentially reaching the top of the channel. However, this bullish sentiment will be invalidated if SOL breaks below the channel support.

A couple of concerns include the loss of green dots, indicating a potential weakening of the bullish trend, and the ongoing consolidation right at channel support. Prolonged consolidation at this level could lead to a breakdown to the downside. It’s crucial to monitor these levels closely to confirm the direction of the next move. Since our meme coins are on Solana, this will be the most important coin for us to follow.

Overall Market Sentiment

After a crazy week in the crypto space, things are looking good! We should expect to slowly see higher highs for these coins as long as the patterns we discussed remain valid. So draw these into your own charts and watch them carefully.

Now that we’ve looked over our macro trends, let’s take a look at how the meme coin ecosystem is performing!

Part 2: Meme Coin Ecosystem

It’s been a good week for meme coin holders! The overall meme coin ecosystem has surged by 13.2% over the past seven days, bringing the total meme market cap to $67 billion (source). Although this number might seem absurd, it’s important to note that the combined market cap of all meme coins is still less than the all-time high market cap of $DOGE alone.

ETH Meme Coins vs. SOL Meme Coins

Ethereum meme coins have led the recent rally, with $PEPE gaining 27% and $MOG skyrocketing by 65% over the past week. In contrast, Solana meme coins have slightly underperformed their Ethereum counterparts. For instance, Solana blue-chips such as $WIF and $BONK have only increased by 31.9% and 28% respectively. Other Solana meme coins, such as $Boden, have seen more modest gains, up only 7% over the same period.

You might be wondering, “Why are ETH meme coins outperforming SOL meme coins?” The answer lies in the recent approval of the Ethereum ETF. Investors predict that the creation of an Ethereum ETF will drive more capital into the Ethereum ecosystem, which includes its meme coins. This expectation has fueled the stronger performance of ETH-based meme coins compared to their Solana counterparts

TL;DR

The meme coin market is rebounding nicely from the April lows. If ETH and SOL continue showing strength, we should see a great week ahead for meme coins.

Part 3: Solana Meme Coins to Watch This Week

In this section, I’m sharing some coins I’m currently watching. We’re looking for bottomed-out charts to minimize the chance of getting rekt. Let’s get into it 👇

Remember, I promised to teach you how to fish, not just give you a fish. I’ll explain why I’m watching these coins so you can understand the reasoning behind it.

Disclaimer: None of this is financial advice. Meme coins are highly risky. Only use what you can afford to lose.

#1: Jeo Boden $boden ($208m Market Cap)

Boden, a meme coin parodying president Joe Biden, has been consolidating and is being overlooked by much of crypto Twitter at the moment. This coin was one of the first to come out during the March meme coin run, reaching an all-time high of $700 million in market cap.

As the US election heats up, attention could return to both $tremp and $boden. The daily chart looks very bottomed out (see how we keep touching the support line in our chart). Keep an eye on it as election time comes around.

#2: Dogwifhat $wif (3.7b Market Cap)

If you’re looking for a solid meme coin watch list, do not skip $WIF. This symmetrical triangle pattern is extremely bullish because it came after a massive surge upwards. Consolidation patterns after a large move up almost always continue upwards. In this chart, we see that it clearly broke outside of the triangle. We also got our first green bar since April 12th. Green bars in this indicator mean that the macro trend is bullish.

A good entry would be a retest of the triangle, however it technically already retested it. It never hurts to get into a small position now and load up on more if a dip comes.

#3: American Coin $USA ($48.8m Market Cap)

This is another coin that will play off the US election. With an all-time high of $120 million market cap, $USA is on a healthy correction. This pattern is holding a very strong support. We are near the apex of the triangle so a volatile move could be imminent. It’s always best to wait for a clean breakout and/or retest before entering a position.

#4: Retardio ($20.4m Market Cap)

Retardio has been consolidating around the $20 million market cap for a few weeks, potentially signaling a good entry point. “Retardio” has become a crypto native word at this point and the retardio team is super active on their Twitter.

Similar to WIF, we seem to be making a symmetrical triangle. Hopefully we start moving upwards and test the top end of the triangle.

#5: NUB (44.9m Market Cap)

Nub has consistently been creating art and engaging with the community on their Twitter. Unlike many other meme coins, Nub is actually funny (imo). Nub has been consolidating since their initial pump in April, and could finally start to turn around soon. On top of this, nub has over 100,000 followers on their Instagram.

On the daily chart, it seems very bottomed out. We recently just had a nice pump as well. Definitely keep this coin on your radar and look for dips to get a good entry.

Conclusion

Thank you for joining us for our first weekly Solana meme coin update! We’ve covered a lot of ground this week, from the bullish momentum driven by the Ethereum ETF approval to the performance of the meme coin market and finally, our top Solana meme coin picks to watch.

Overall, we’re bullish on both crypto and meme coins long-term. The future looks bright, and we’re excited to continue sharing insights and analysis with you.

Stay tuned for more updates, and feel free to follow me, Ben, on Twitter here (my Twitter currently sucks). Feel free to reach out!

Disclaimer

The information provided on this blog is for educational and informational purposes only and should not be construed as financial or investment advice. We are not licensed financial advisors, and the content on this blog is not intended to be a substitute for professional financial advice.