Solana (SOL) hit a price resistance level and is currently on a retracement after benefiting from the Trump meme coin frenzy. Although the price is retracing, technical indicators show positive momentum.

According to TradingView, SOL hit a resistance level of $261 on Sunday. The trend was boosted by the launch of Donald Trump-themed meme coins, a significant addition to the network. However, the rally isn't limited to hype; it's underpinned by technical indicators and institutional interest that signal the potential for further growth.

At the time of publication, SOL changed hands for $241, representing a 28% increase in the past week and a 2% decline in the past 24 hours. Price remains above the 50 and 200 moving averages but still below the overbought zone at 63.

Meme Coin Mania Fuels Solana's Rally

On the weekly chart, Solana soared 41% from $183 to $260 as investors remained optimistic amid high trading volumes and speculation about a possible Solana-based spot ETF.

Besides the positive technical indicators, Solana is facing positive fundamentals. Solaxy, a layer-2 solution, has raised over $12 million in a presale, CryptoPotato reported. The Solana-based project promises to enhance scalability by processing transactions off-chain and bundling them to reduce congestion on the main network.

Additionally, its compatibility with Ethereum boosts its liquidity potential in Solana's growing ecosystem. Despite the excitement, Coinbase has faced heavy criticism for withdrawal delays affecting Solana transactions.

Coinbase Faces Backlash Over SOL Withdrawals

Users vented frustration on social media, with some accusing the platform of failing to prioritize Solana infrastructure. Meanwhile, other users reportedly claimed significant financial losses as they waited hours for pending transactions.

Coinbase, which recently listed the Official Trump meme coin as an SPL token, has a history of operational issues during market surges. The platform's outages and Solana's occasional network disruptions have reportedly compounded users' dissatisfaction.

Solana's price started retreating on Sunday, moving as low as $230. This represents a significant decline from the previous high of more than $270 just hours earlier.

Additionally, the new memecoins by the US first couple faced market volatility after Trump's swearing-in yesterday (Monday). At the time of publication, $TRUMP was down 22% in the past day at $38. On the other hand, $MELANIA has also dropped from a high of $13 to currently trade at $3.

Despite the turbulence, SOL remains a top contender in the crypto space. The market is eyeing a potential rebound fueled by robust ecosystem growth and institutional interest. Solana's Soaring to over $1000 strongly depends on the overall market dynamics.