WEN and JUP drive Solana‘s (SOL) recovery, but there’s a catch

Solana (SOL) makes a notable comeback, painting its price charts green. The L1 altcoin gained more than 20% over last week and 5.76% in the past 24 hours.

SOL 1D Chart on Coinmarketcap

Nonetheless, SOL‘s recovery is contingent on the hype surrounding two tokens created on the Solana platform – WEN & JUP. Thus, enthusiasts should be careful when interacting with the asset’s ongoing recovery.

Solana revival hinges on these alts

SOL price has recorded impressive surges since bottoming at $79 on 23 January. The recovery comes amid Wen ($WEN) airdrop, targeted to hit one million addresses. The giveaway has ended, and the project will lock around 1/4 of the overall supply forever.

WEN joined the Solana network on 26 January as the Wen Foundation launched a token alongside the new WNS 0.0 NFT standard. The network airdropped WEN tokens to followers using the claim functionality. Now, emissions have ended, and the team destroyed the remaining assets.

???? BREAKING: @wenwencoin burns the unclaimed $WEN airdrop worth around $40M.

— SolanaFloor | Powered by Step Finance (@SolanaFloor) January 29, 2024

Meanwhile, the airdrop campaign was strategic, considering that WEN launched on the Solana-based Jupiter decentralized exchange. The giveaway aimed at enhancing the ecosystem and boosting native coin, JUP, saw Jupiter DEX outshining Uniswap in trading volume.

JUP coin has attained listing in various platforms, including Bitfinex, Bilaxy, XT.com, and Bybit.

Were excited to be among the first to list $JUP from @JupiterExchange! ????

Learn all about Jupiter – the decentralized crypto swap exchange based on the @solana ecosystem ✅

— Bitfinex (@bitfinex) January 29, 2024

Solana price trajectory

While WEN and JUP create a buzz, Solanas price maintained upsides, benefiting from surging momentum underscored by the rising RSI. Also, the Awesome Oscillator displays green histograms, suggesting bull resurgence.

Amplified buying momentum beyond current levels might propel SOL towards the supply zone at $10.7.92 – $121.19. a candle closing beyond the ranges midline would push prices toward $114.76 before robust bull activity propels the altcoin past the range high at $126.

Potential profit-taking could ruin SOLs rally

While Solana exhibits a stable upside momentum, traders might postpone the expected rally through profit-booking, considering the latest nearly 30% gain and the somewhat fading WEN and JUP frenzy. Such a development would see SOL losing ground, opening the path to the footing at $93.46.

Continued selling actions will plunge the alt to $89.02. Dire cases would see bears dumping Solana prices to $72.44 before a potential retest of the buyer congestion area at $68.03, translating to a nearly 35% dip from current prices.

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