Solana (SOL) Holds Its Ground as Pump.fun and Raydium Battle for Market Dominance

Solana (SOL) is displaying its fortitude as a battle for the spotlight emerges on Solana soil.

Solana (SOL) displayed resilience as an emerging meme coin launchpad, Pump.fun, officially parted ways with Raydium, a major DEX on Solana, to launch its own DEX, aiming for a larger share of market trading. This move sparked an intense competitive atmosphere between the two platforms as they vied for users and trading volume.

Throughout the competitiveness between the two projects, SOL managed to maintain a minimal decline of 0.34% over the past 24 hours, as the token is now trading at $118.28. Even as these two projects compete to be the “most dominant,” any increased utilization on the Solana blockchain will still benefit the blockchain itself.

Solana (SOL) Price Chart: (Source: Chart by TradingView)

Pump.fun’s rise has shaken up the Solana ecosystem, bringing in more users and liquidity. By launching its own DEX, it has positioned itself as a major player, chipping away at Raydium’s dominance. According to a recent K33 Research report, Pump.fun’s trading volume has surged, while Raydium is struggling to keep up. Meme coins continue to drive hype, and with so much action happening, it’s clear that the Solana blockchain is thriving, even as its protocols battle for the top spot.

As Pump.fun continues to gain momentum, it will be interesting to see how Raydium responds and how this competition ultimately impacts the Solana ecosystem. With both platforms offering unique advantages, traders and investors will have more options for engaging with the Solana ecosystem.

Can SOL Hold Its Gains Amid Market Uncertainty?

Despite the drama unfolding, Solana's (SOL) price has remained stable, consolidating below $120. Key support is sitting at $112, and any push higher could lead SOL to test resistance at $132. This clash, alongside price movement across the market more broadly, especially with Bitcoin's directional change, is an important factor in determining SOL's future price direction. As traders are watching the price action carefully, let's break down the key technical indicators of SOL's price outlook.

Price Analysis and SOL Price Prediction

Solana (SOL) experienced a period of range-bound movement before a strong breakout pushed the price toward its resistance zone at $132. However, selling pressure at this level triggered a sharp reversal, leading to a steep decline. The price attempted to stabilize around $122, a former support zone, but failed to hold.

As the bearish momentum continued, SOL slid further, reaching a key support level near $113. The RSI indicator showed multiple overbought signals before the price collapse, highlighting strong resistance at higher levels. As SOL declined, RSI entered oversold territory several times, indicating weak buyer interest during the sell-off.

Chart 1, Analyzed by Alokkp0608, published on April 3rd, 2025.

Meanwhile, the MACD indicator provided early bearish warnings, with "death crosses" aligning with downward price moves, while "golden crosses" attempted to trigger minor rebounds. Currently, SOL is consolidating near its new lower support range at $115, with RSI at 35, suggesting weak bullish momentum. MACD remains negative, reinforcing the ongoing bearish sentiment.

If buyers regain control, SOL could rebound toward $122, now acting as a resistance level. But if sellers persist, a breakdown below $113 might lead to a sharper decline.

Solana at a Crossroads: Rebound or Further Decline?

The competition between Pump.fun and Raydium has fueled betting on the Solana blockchain to attract more users and drive action, especially in the meme coin space. However, despite the uptick in activity, SOL's price remains hard to gauge, with broader market action and internal events continuing to play a role.

While the token has managed to stay afloat price-wise, whether SOL can maintain its gains will come down to how this battle plays out and what the broader market will do, especially as influenced by Bitcoin.

From a technical perspective, SOL must break above $122 to establish a rebound to $133, a price zone where solid resistance led to a sales event. If SOL fails to break back above that $122 mark, it will likely be back in a consolidation phase. In the opposite direction, if SOL breaks below $113 and below that zone, it might indicate more weakness, moving the price down toward the next major support zone around $106-$108.

As the technical outlook unfolds, traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.