On Sunday, Solana (SOL) reached a new all-time high of $295.83 before retreating to its current price of $251. The price increase follows the surge in decentralized exchange (DEX) trading volume to a record $27 billion.

This surge in DEX trading volume is largely due to the hype surrounding the meme coins TRUMP and MELANIA, which have contributed to the optimistic market sentiment. As more investors continue to flock to these meme tokens, the Solana ecosystem benefits from the additional transaction activity and market interest.

According to on-chain data, SOL’s market capitalization also soared to a high of $140 billion. If the interest in these meme coins continues, SOL could soon break above the $300 mark.

Solana’s Record DEX Trading Volume

The blockchain’s decentralized exchange trading volume rose from $4.5 billion last week to $27 billion, a sixfold increase. Along with the DEX trading volume, SOL’s Total Value Locked also reached a high of $14.24 billion, up from the previous $10.11 billion, signaling the increasing activity within the Solana ecosystem.

TVL is the total value of the assets held in DeFi protocols. As more people use Solana-based platforms, TVL will rise. Such a jump in interest in Solana’s DeFi ecosystem indicates that this blockchain has become popular among developers and users.

The more assets are locked into Solana-based protocols, the more liquidity this blockchain experiences. Hence, a substantial increase in these assets will further boost the bullish sentiment surrounding SOL.

In addition, on-chain data showed that SOL earned almost $34.3 million in fees on Monday, a new record high for fees generated within 24 hours.

SOL’s Technical Analysis

From a technical viewpoint, Solana’s price action indicates further upside. The token recently broke above a descending trendline from late November, surging more than 34% to reach its new ATH at $295.83.

These indicators suggest that SOL is well-positioned to rise higher despite a brief pullback towards its next support level. This support level also coincides with the 50% Fibonacci retracement level—a popular indicator in which traders project the likely area where price action tends to reverse.

If the price of Solana can hold above this level, it will be on a clear path to an all-time high, making the $300 level a high possibility.

The RSI currently reads 69, indicating excellent bullish momentum. Currently, the RSI is near the overbought zone, which may trigger a short-term correction.

Overbought scenarios in the RSI could indicate a pullback or consolidation. On the other hand, if the RSI remains above overbought levels, SOL could continue higher without any major pullback, further confirming its strong bullish bias.

TRUMP’s Launch on the Solana Blockchain

Meanwhile, the release of the TRUMP meme token on the Solana blockchain has been surrounded by allegations of conflict of interest and nepotism. Daniel Prince, a popular podcast host, asserted that the selection of Solana as the host blockchain for TRUMP was predetermined for several reasons.

One reason was investments made by people close to the Trump administration and the Solana ecosystem. Prince identifies David Sacks, who is expected to be the crypto and AI chair in the Trump administration, as someone with indirect investments in Solana through his VC fund, Craft Ventures.

Craft Ventures invested in Multicoin Capital, which led the blockchain’s Series A funding round in 2019. Lyndon Rive, an angel investor in Solana, is related to Elon Musk. After its launch, the TRUMP token quickly gained traction in the crypto world, reaching the 14th largest cryptocurrency by market capitalization.

However, this token’s rapid rise has not been without controversy. Industry figures like Anthony Scaramucci and Eric Balchunas have expressed concerns that the launch of TRUMP could have negative implications for the broader crypto market.

Still, TRUMP continues to show substantial trading volumes, suggesting ongoing interest from retail investors.