Solana (SOL) continues its impressive rally, trading around $253.94 at press time, after hitting a record high of $294.33 on January 19.
The blockchain has emerged as a focal point in the cryptocurrency market, driven by the explosive popularity of the TRUMP and MELANIA meme coins, which have significantly boosted trading activity.
With volatility persisting, speculation is mounting over whether Solana’s meme coin-fueled surge will continue or if the market is on the cusp of a correction.
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AI predicts Solana price amid meme coin frenzy
To assess Solana’s next move, Finbold analyzed market trends and tapped into insights from OpenAI’s ChatGPT-4o model, shedding light on what could lie ahead for Solana.
The AI offered a bullish outlook, projecting that SOL could trade between $300 and $320 if the current momentum sustains.
On-chain metrics signal strong activity
Solana’s ecosystem has experienced a surge in key metrics, with its Total Value Locked (TVL) climbing from $8.49 billion to $12.189 billion as of January 20, according to DefiLlama.
Additionally, daily fees generated on the network reached a new high of $35.53 million, with 6.35 million active addresses in 24 hours. This overall activity propelled Solana’s DEX volume to $27 billion at press time, more than sixfold from January 1 levels of $4.4 billion, according to data retrieved from Artemis Terminal.
However, the influx of activity hasn’t been without challenges. The TRUMP and MELANIA launches caused temporary congestion, with users reporting delays and transaction failures during peak trading periods.
Despite these challenges, Solana has maintained 100% uptime since February 2024, according to data from status.solana.
Meme coin hype: Opportunity and risk
The TRUMP token, with over $9 billion market cap, became the largest meme coin on the blockchain, while MELANIA’s market cap quickly reached $1 billion.
These tokens, launched in the lead-up to Donald Trump’s presidential inauguration, attracted widespread attention but also raised concerns about transparency.
For instance, blockchain analytics firm Bubblemaps revealed that 90% of the MELANIA token supply is controlled by a single wallet, sparking debate about token distribution fairness.
Despite these concerns, the tokens have significantly Solana’s network activity.
Solana price outlook
Amid this backdrop, artificial intelligence models project that Solana could hit the $300 level before the end of January, with a potential rally to $320 if the current bullish momentum persists.
However, if bearish sentiment emerges, SOL could retest support levels at $245 or even $230. The final trajectory will depend on the balance between sustained on-chain activity and broader market conditions.
Looking further ahead, AI forecasts to place Solana in a price range of $350 to $400 by the end of 2025 if it maintains its appeal to both institutional and retail investors.
Featured image via Shutterstock
