Can POPCAT Memecoin Be the Catalyst Solana [SOL] Needs to Rise?

Renowned analytical firm Lookonchain revealed on X (formerly Twitter) that following Binance's announcement of POPCAT perpetual contracts

Solana [SOL] price has been largely affected by a bearish trend over the past two weeks, having last broken through the $200 barrier about six months ago. At press time, it was trading at $145.

However, over the past 24 hours, SOL surged by 2%, a jump that coincided with the listing of POPCAT on Binance and KuCoin.

On 22 August, Binance launched perpetual contracts for the Solana-based memecoin POPCAT, while KuCoin listed a POPCAT/USDT trading pair on its spot market.

As a result, POPCAT surged over 20% following the listings on both exchanges. Given that Solana often relies on its memecoins during periods of market volatility, could POPCAT be the next catalyst for Solana’s rise? AMBCrypto investigated.

Solana memecoin gains attention after Binance listing

According to analytical firm Lookonchain on X (formerly Twitter), following Binance’s announcement, a whale withdrew 39,816 Solana, valued at $5.73 million, from the CEX to purchase 10 million POPCAT memecoins.

This highlighted the rising prominence of memecoins on the Solana network.

To gain a deeper understanding of the impact of meme tokens on Solana, AMBCrypto analyzed the latest market trends. The findings revealed several crucial insights.

Solana price largely affected by memecoin activity

From the findings, it was observed that on the day POPCAT officially entered the KuCoin spot exchange, buy orders for SOL surpassed sell orders by 13%. At the same time, the aggregate net exchange flow remained negative.

In essence, investors may have been buying SOL to participate in the POPCAT memecoin ecosystem, indicating confidence in Solana-based projects.

The negative net flow indicates that more Solana is being withdrawn from exchanges than being deposited, possibly due to the whale activity mentioned earlier. This activity may have influenced Solana’s price in a bullish direction. However, AMBCrypto explored whether this trend could sustain in the long run.

Solana price needs strong conditions for a guaranteed surge

Since its listing, POPCAT has seen a significant surge. On the daily timeframe, a strong bullish move brought the meme token closer to its previous rejection level of $0.6607.

While POPCAT has shown impressive performance on the daily chart, this does not necessarily guarantee a long-lasting impact on Solana’s price. For such an assurance, market conditions would need to favor the altcoin.

Interestingly, despite the recent whale activity, the trading volume for the altcoin did not increase. On the day of the listing, the volume on the Solana network crossed the $2 billion mark, but it has since dropped to $1.40 billion.

Even more notably, the Weighted Sentiment shifted from being extremely positive to moderately positive.

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