With Bitcoin (BTC) finding support at the $93,000 mark, most altcoins are recording impressive gains over the final days of April, with Solana (SOL) outperforming the rest of the leading tokens on the weekly chart. SOL currently sits at $154, up over 15% in the past week.
SOL’s impressive performance is positively affecting the existing tokens in its ecosystem, with many Solana meme coins soaring this week. Meanwhile, Solaxy (SOLX) is also preparing to launch its Layer 2 for the Solana network as its presale raises over $31 million.
Bullish Developments as Solana Dominates On-Chain Activity Metrics
Although SOL faced a steep downturn that started in late January and culminated with its dip to the $97 level in early April, the increasing institutional interest in the token has helped it make an impressive recovery.
Following the release of two ETFs tracking Solana’s futures in the US, North America got its first spot SOL ETFs when four Canada-based asset management firms listed their products on the Toronto Stock Exchange on April 16th.
While the launch of these ETFs coincided with SOL’s jump to the $133 level the following day, SOL Strategies Inc. made waves in the market with the announcement of the largest SOL investment to date. The company secured $500 million to expand its SOL holdings, which it will use to purchase and stake the token, with the interest being paid in SOL.
As more capital flows into staking, the circulating supply decreases, which could create scarcity and push SOL’s price upward as demand increases. Popular analyst TradelikeKevin believes SOL is prepared to revisit the $200 level this June, but has warned his audience of a potential market-wide healthy correction that could see it return to the $130 range before its next soar.
Agreeing with that possibility, commentator Crypto Chase believes the $130 range would represent an ideal buying zone, expecting SOL to reach the $167 mark before the pullback.
The analysts are counting on a slight downturn because SOL’s Relative Strength Index (RSI) of 66.2 is close to the overbought territory. A brief correction would provide SOL with a much healthier setup for the next leg up, setting the stage for a surge above the $200 mark.
A dip to the $130 level would still keep SOL above its 50-day Simple Moving Average (SMA), while the token’s potential to surpass the 200-day SMA of $175 leaves room for parabolic growth in the mid and long term.
Besides the explosion in institutional and retail interest in SOL, Solana is displaying strength by retaking the leading spot among popular blockchains’ daily active users, according to data from Token Terminal, which may reflect heightened demand for SOL.
Solaxy Presale Hits $31.5M as it Prepares for Layer 2 Release
Since Solana’s increasing popularity may put a strain on the network and mark the return of its congestion-related issues, it’s no surprise Solaxy is also enjoying increasing attention, as its ecosystem’s release could help enhance Solana’s scalability.
Solaxy’s upcoming Layer 2 blockchain for Solana is designed to take the burden off its mainnet by processing bundled transactions off-chain, which could speed up transactions and result in lower gas fees.
Besides the Layer 2 blockchain, Solaxy’s developers intend to roll out a token launchpad and a dedicated bridge that would enable cross-chain swaps between Ethereum, Solana, and Base.
Plus, they’ve already released a testnet version of the ecosystem’s block explorer, with an integrated development environment (IDE) and a dedicated knowledge base site coming soon.
Presale analyst Austin Hilton believes the Solaxy ecosystem will experience rapid growth, expecting it to become “one of the bigger meme coin launch blockchains.”
The analyst is confident SOLX will soar by 5-10x on launch, advising his audience to enter the presale while the per-token price is low. Currently, investors can purchase SOLX for $0.001704 each, with its whitepaper revealing that the per-token price will increase to $0.00179 by the end of the presale.
Additionally, early backers can benefit from the project’s massive 128% dynamic staking APY, making this the best time to start accumulating and staking SOLX.