SOL, PEPE, and BUZZ Tokens Draw Attention Amid Market Headwinds

Rising bond yields and persistent macroeconomic headwinds continue challenging the broader cryptocurrency market. Solana (SOL), PEPE, and the newly launched BUZZ token have drawn considerable attention amid this volatility.

Major cryptocurrency narratives continue unfolding amid a backdrop of rising bond yields and persistent macroeconomic headwinds. While the broader market faces corrections, specific tokens like Solana (SOL), PEPE, and the newly launched BUZZ token have drawn considerable attention.

As risk appetite diminishes with the increasing attractiveness of fixed-income assets, cryptocurrencies are facing a sell-off across the board. However, emerging narratives and ecosystem developments surrounding these tokens present a nuanced picture.

The SOL USD pair has bulls worried as the Solana token has formed a bearish technical setup called the ‘rising wedge.’ This pattern signals a potential reversal in the current trend, where the price action is squeezed between two upward-sloping lines converging towards each other.

The rising wedge is typically identified by a series of higher highs and higher lows, indicating reduced buying momentum as the pattern progresses. The distance between the resistance and support lines decreases, showing weakening momentum.

The pattern usually leads to a downward breakout, where the price breaks below the support line, often with increased trading volume, signaling strong selling pressure. Traders calculate the price target for the pattern by measuring the vertical distance between the wedge’s initial high and low points and subtracting this from the breakout point.

Per the rules of technical analysis, if the Solana token price breaks below the bearish pattern, the SOL USD pair might fall to the theoretical price target near $53, a drop of over 71.5% from current levels.

Meanwhile, the SOL price action continued its consolidation as bulls prepared to challenge the resistance near the 0.618 Fibonacci retracement level (~$198). A breakout above this level could pave the way for a rally toward $218 (0.786 level) or even $243 (1.0 level).

But, a downtrend from here might trigger a pullback to $186 (0.5 level) or the 0.382 retracement (~$170). However, SOL needs to reclaim the 20-day EMA for bullish momentum.

Meanwhile, the RSI at 41.82 signals bearish momentum but remains above oversold territory, suggesting room for further downside if buyers fail to step in.

The upcoming Feb. 4, 2025, halving event marks a key moment for PEPE, slashing its mining rewards from 62,500 PEPE per block to 31,250 PEPE. Such events typically increase token scarcity, bolstering their appeal among investors. However, PEPE’s memecoin origins and speculative trading behavior make its reaction less predictable than that of established cryptocurrencies like Bitcoin.

Recent PEPE price action has mirrored broader market uncertainty. After gaining 1,100% in 2024, the token has faced corrections, trading around $0.0000012 with a market cap of nearly $500 million. If macro conditions improve, the halving event could reignite investor interest, providing bullish momentum. Conversely, reduced rewards might deter miners, impacting network participation and creating temporary bearish sentiment. While the community anticipates a supply-driven rally, lingering macroeconomic pressures could temper expectations.

The 100-day EMA (blue) serves as an immediate support zone, with the PEPE USD pair likely to face resistance from the 0.618 Fib retracement level near $0.0000201. A breakout above this resistance could pave the way toward $0.0000236 (0.786 Fib level). However, failing to hold above the support level might push PEPE price down to $0.0000155. Breaching the immediate support might force the support near $0.00001253 into play.

Meanwhile, a bearish cue for the memecoin comes from PEPE’s 20-day EMA and 50-day EMA (purple) wave forming a bearish occurrence called the death cross, which could increase the selling pressure.

With reduced miner rewards set to increase token scarcity, the halving could act as a bullish catalyst. However, lingering macroeconomic uncertainty and speculative trading patterns might temper immediate gains. PEPE’s price trajectory depends heavily on its ability to reclaim short-term resistance levels and attract renewed interest ahead of this significant event.

BUZZ, the native token of Hive AI, debuted on January 2, 2025, and has since captured significant market attention. Operating on the Solana blockchain, Hive AI integrates artificial intelligence into decentralized finance (DeFi), simplifying operations through natural language processing. Users can execute complex DeFi tasks with simple chat commands, marking a transformative approach in the sector.

Following its launch, BUZZ experienced a meteoric rise, multiplying 75x within an hour and reaching a market cap of $44.66 million. This surge can be attributed to its innovative use case