SHROOM Ignites Massive Gains in the Midst of Solana Meme Coin Frenzy

In an astonishing display of trading prowess, a trader reaped a staggering $8.9 million within just one hour by trading SHROOM, a memecoin on the Solana (SOL) blockchain. Lookonchain reports that the trader invested 6,000 SOL to purchase 292.16 million SHROOM tokens, subsequently selling them for $9.93 million, yielding remarkable profits.

SHROOM Leads Meme Coin Surge on Solana with 579% Spike in 24 Hours, SOL Struggles Amid 4.29% Decline

SHROOM is among the plethora of meme coins that have recently emerged on the Solana blockchain. Notably, Coin Edition highlighted BOOK OF MEMES (BOME), which propelled buyers to significant gains upon reaching a $1 billion market cap.

At present, DEXScreeener indicates a remarkable 579% surge in SHROOM's price within the last 24 hours. However, despite its market cap briefly reaching $60 million, it has since retraced to $34.2 million at the time of writing.

Nevertheless, the proliferation of meme coins has not shielded SOL from a downward trend. Despite previous attempts to breach the $200 mark, bears thwarted these efforts on March 18, resulting in a 4.29% decline in the token's price over 24 hours.

SOL Faces Bearish Sentiment as Bulls Lose Support, Potential Decline to $149.20, Despite Oversold Signals, Long-term Resurgence Possible

A bearish sentiment is evident in SOL's price action, with bulls relinquishing control of the $177.97 support level on the 4-hour chart. Although there was an attempted breakout towards $250, it was swiftly rebuffed, with resistance at $195.65 firmly nullifying the endeavor.

Presently, bears dictate SOL's trajectory, indicating a lack of imminent reversal. Should this trend persist, SOL's price may decline to the local support level of $149.20.

Moreover, liquidity continues to exit Solana, as indicated by the Money Flow Index (MFI) reading of 27.48, suggesting heightened selling pressure. However, the MFI can signal oversold conditions, potentially leading to a price reversal if it hits 20.00.

SOL/USD4-Hour Chart

Additionally, the Awesome Oscillator (AO) suggests a lack of momentum for a rebound unless SOL further descends. With a negative reading, the AO implies a potential slide below $150. Nonetheless, a mid-term outlook hints at SOL's potential resurgence towards $250.