Solana signals 40% crash vs. Ethereum amid cooling memecoin craze

Key takeaways:

• SOL/ETH has breached beneath a rising wedge pattern, signaling a imaginable 40% decline.

• Solana’s memecoin gross has collapsed since April, weakening its halfway worth proposition.

• Standard Chartered warns Solana whitethorn underperform arsenic Ethereum’s L2 ecosystem grows much competitive.

Solana’s (SOL) multiyear outperformance against Ethereum’s autochthonal token, Ether (ETH), is losing momentum, with method breakdowns and weakening onchain enactment pointing to a imaginable crisp diminution successful the SOL/ETH brace next.

SOL enters rising wedge breakdown stage

As of May 29, the SOL/ETH brace has confirmed a breakdown from its multimonth rising wedge pattern, a bearish operation that often precedes important declines.

In method terms, a rising wedge breakdown typically results successful a driblet adjacent to the pattern’s maximum height.

SOL/ETH play terms chart. Source: TradingView

For SOL/ETH, this projects a downside people for July, adjacent 0.038 ETH, representing a 40% diminution from existent levels.

The 50-week exponential moving mean (50-week EMA; the reddish wave) astir 0.0628 ETH is offering interim support. A decisive play adjacent beneath this level would apt corroborate the bearish continuation toward the 0.038 ETH target.

A bounce, connected the different hand, could person SOL reclaim the wedge’s little trendline arsenic support, which whitethorn hold the breakdown scenario. Breaking supra the wedge’s precocious trendline volition apt invalidate the 40% clang setup altogether.

Cooling memecoin frenzy hints astatine SOL/ETH crash

The breakdown successful SOL/ETH aligns with a disposable diminution successful memecoin-driven enactment connected Solana.

A cardinal indicator is Pump.fun, the largest memecoin motorboat level connected the network, which shows a crisp driblet successful regular interest gross since aboriginal April.

Daily fees peaked successful Q1 2025 but person since fallen to near-yearly lows, signaling reduced speculative enactment connected the chain, according to Dune Analytics.

Pump.Fun interest and gross chart. Source: Dune Analytics

The level had been a major contributor to Solana's gross growth, particularly betwixt December 2024 and March 2025.

During this period, full cumulative fees surged past 3 cardinal SOL arsenic retail traders flooded the web to motorboat and commercialized meme tokens. These metrics person crashed ever since, weakening 1 of Solana's superior worth drivers.

A May 27 report from Standard Chartered further reinforces the downside narrative. The slope warned that Solana whitethorn underperform if it cannot diversify beyond memecoins, which presently predominate its transaction activity.

Solana's decentralized speech volume. Source: Standard Chartered

Standard Chartered said that Ethereum is gaining crushed with scalable layer-2 solutions that connection comparable fees and deeper infrastructure for real-world applications.

Related: Ethereum flashes ‘altseason’ awesome arsenic ETH terms eyes $4.1K

Chartist Alex Clay asserts that a alleged “Ethereum outperformance season” has already arrived, reiterating assurance successful the rising wedge breakdown connected the SOL/ETH charts.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.