In the current crypto trend, the craze revolves around Solana-based meme coins. These coins, linked to internet memes and deployed on the Solana blockchain, are sparking controversy amid massive fanfare. Considered by some as vehicles for fraud, others perceive them as opportunities for significant gains. However, the current buzz around the recently launched Slerf and Book of Meme coins appears to be diminishing as they lose buying demand following high pump.
Solana Memecoins Hype Cools Down
As meme coins gain momentum, several analysts have expressed concerns about the increase in pre-sales of meme coins on the Solana blockchain. This alarm is ringing as coins like “Slerf” become popular and the pre-sale of “areyoustupid.sol” leads to increased transaction fees and on-chain activity on the Solana network.
Analysts suggest that strategies aimed at quick profits, similar to the ICO bubble of 2018, are failing to advance the sector's growth, urging caution around such approaches. The growing enthusiasm around Solana meme coins is a warning sign, given the lack of a clear development plan and the price surge driven by major investors. This often leads to significant losses for small investors when the market is trending downward.
Over the past day, Slerf price soared over 100%, but then fell from its high of $1.4 following a wave of liquidations. Meanwhile, the price of Book of Meme (BOME) soared more than 1,200% in four days, but the hype has since subsided, tempering its rapid rise.
Slerf Price Analysis
Slerf price fell below the 20-day exponential moving average (EMA) at a price of $0.93, signifying weakening bullish momentum. However, buyers' attempts to initiate a return managed to break above the 20-day EMA level. This suggests continued support from the bulls.
The bulls strongly defend a decline below $0.7, sending the price back above $1. However, sellers remain active near higher levels, putting pressure on the price chart. This trend suggests that the Slerf price may continue to trade in a limited area.
If the price falls below $0.7, it could create a dumping situation as a large number of holders would rush to liquidate their gains.
Book Of Meme (BOME) Price Analysis
BOME price fell below the EMA trendlines and touched the low of $0.009. However, buyers managed to defend this level and trigger an upward surge.
Buyers send price above the descending resistance line. If successful, we could see BOME price heading towards the initial resistance of $0.02. However, bears will strongly prevent a rise from this level. A decline below $0.008 will trigger bearish pressure on BOME.
To avoid such a slowdown, bulls are challenged to keep the price above $0.02. Succeeding in this could stabilize the pair in a trading range between $0.2 and $0.27 for an extended period.