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Solana phone sales skyrocket as degens scramble for pumped-up BONK

At current prices, the free BONK airdrop for Saga owners stands at $877, making it — at least temporarily — a “phone that pays for itself.”

Memecoin hopefuls have been snapping Solana’s crypto phone in droves after a recent price hike for Solana memecoin Bonk (BONK), which has risen more than 1,100% in the last 30 days. 

Since the Solana phone was launched on May 8 this year, new owners have been able to claim a free 30 million airdrop of the memecoin, but a recent rise in the token's price has presented an interesting arbitrage opportunity for buyers.

“Solana phone sales have >10x'd in the past 48 hours, and are now on track to sell out before the new year,” wrote Solana co-founder Raj Gokal in a Dec. 15 post to X (formerly Twitter).

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Solana memecoin Bonk flips Pepe following 370% monthly gain

The dog-themed token has surged to become the third-largest memecoin overall.

A Solana-based dog-themed memecoin called Bonk (BONK) has now become the third-largest memecoin by market capitalization, surging past that of fellow memecoin Pepe (PEPE) on Dec. 8.

Bonk’s recent price growth — 370% in the last month — has seen its market cap grow to $762 million, compared to Pepe’s current $675 million market cap, per CoinGecko data.

In the past 30 days, BONK has grown from $0.0000028 to $0.000012 as traders rushed to capitalize on a new wave of interest in the Solana ecosystem.

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Solana price rally risks exhaustion after SOL’s 120% pump in two weeks

SOL price has been unable to close above a key resistance level of around $17.50 despite its big rebound in the past two weeks.

Solana (SOL) price is up an impressive 60% since the new year, partially boosted by hype surrounding meme cryptocurrency Bonk (BONK). However, the SOL/USD pair now shows signs of exhaustion, raising anticipations that the token may see a short-term correction in the coming days.

Solana turns overbought

Solana is one of the best performing cryptocurrencies so far in 2023 after being one of the biggest losers in 2022. 

On Jan. 9, SOL's price jumped to as high as $19.50, or around 120% gains in a recovery rally after sliding below $8 on Dec. 29, 2022.

But the price spik also turned Solana into an overbought asset, per its daily relative strength index (RSI) reading above 70, as shown below.

SOL/USD daily price chart. Source: TradingView

Traditional investors typically see an overbought RSI as a potential sell signal, given the indicator has historically coincided with a period of buyer exhaustion. As a result, SOL's price could enter a correction or a sideways consolidation stage to bring back its RSI below 70.

Related: Bitcoin price taps $17.5K as traders in ‘disbelief’ doubt crypto rally

Should it happen, the Solana token's next downside target appears at around its 50-day exponential moving average (50-day EMA; the red wave) near $14.50.

Meanwhile, an extended selloff could land the price near its 20-day EMA (the green wave) near $13.35, or a 20% correction.

Buy the SOL price dip? 

On a longer-timeframe chart, however, SOL eyes a decisive breakout move above its prevailing resistance level of around $17.50.

SOL/USD weekly price chart. Source: TradingView

The $17.50 level was instrumental in capping SOL's downside attempts in the April-July 2021 session. Therefore, a successful flip of the resistance level into support could prompt traders to open new bullish positions toward $25, a level coinciding with SOL's descending trendline resistance (black).

Conversely, failing to flip the $17.50 resistance level could risk sending SOL back below $8, a possibility if one considers the negative fundamentals surrounding the Solana ecosystem.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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