Solana (SOL) price has recently retraced towards $170 on March 20, just 48 hours after hitting a 3-year peak of $210. Three key market indicators suggest that the ongoing memecoin trend could potentially reignite the rally.

Demand for Solana memecoins continues to outpace the global meme market, with new participants entering the market. The SOL memecoin sector is now valued at over $5.8 billion, with projects like Dogwifhat (WIF) leading the way. Other Solana-hosted memecoin projects like Book of Memes (BOME) and Slerf have also achieved unicorn status within a week of their launch.

The SOL memecoin ecosystem is showing signs of attracting higher demand compared to the global meme sector. The trading volume to market capitalization (TVMC) ratio for SOL memecoins is at 52%, indicating higher liquidity and investor interest compared to the global average of 21%.

The memecoin trend is also driving Solana up the media trends tables, with social dominance and media traction on the rise. Despite network outages being a point of discussion, the Solana memecoin rave and fourth-anniversary activities have taken center stage.

Market data points suggest a bullish outlook for SOL price, with the potential for a breakout towards $250 if investor interest continues to grow. As of March 21, SOL price is hovering above $190, showing a rebound of 9% within the daily timeframe.

Technical analysis indicates that a breakout above the $209 level could propel SOL price towards $250. On the downside, the $160 range serves as a major support level, with a bearish reversal appearing unlikely in the near term due to the increasing demand for SOL native memes.

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