- Traders switch from meme coins to Layer 1 assets, with Cardano and Solana leading 44.2% of specific coin discussions.
- Cardano sees $4.4M in institutional inflows amid ETF speculation, while Bitcoin and Ethereum record major outflows.
- ADA consolidates at $0.7798 with $0.85 resistance, while SOL holds key support at $85 as RSI signals weak momentum for both.
The crypto market is changing as traders switch from meme coins toward Bitcoin and Layer 1 assets like Cardano and Solana. These top Layer 1 assets currently dominate 44.2% of discussions about specific coins.
Meanwhile, meme coins such as Dogecoin, Shiba Inu, and Pepe are being discussed less, a decline in speculative interest. This shift follows increased market volatility and a downturn in speculative altcoin dominance.
Focus on Stability as Meme Coin Hype Fades
Meme coins thrive on speculation, led by viral trends rather than fundamental utility. Their dominance in discussions typically suggests heightened greed, where traders seek rapid gains without long term viability.
Historically, such trends precede market corrections as speculative assets experience sharp declines when hype fades. Now, with discussions moving toward Layer 1 assets, the market is nearing a more stable phase.
Investors are refocusing on assets with strong fundamentals and established positions. This transition reduces unsustainable price surges. While meme coin rallies may return, current discussion rates suggest a cool down period that benefits long term market stability.
Institutional Interest in Cardano
Cardano and Solana both offer good DeFi ecosystems and scalable solutions, making them direct competitors. However, institutional interest in Cardano has surged recently, leading to increased capital inflows.
According to CoinShares, ADA recorded $1.9 million in inflows last week, totaling $4.4 million over the past month. In contrast, Bitcoin and Ethereum had substantial outflows, with $430 million and $7.2 million withdrawn, respectively.
This trend suggests investors are diversifying into altcoins like Cardano. The growing institutional confidence strengthens ADA’s bullish case, especially as speculation about a potential Cardano ETF intensifies. Grayscale filed for an ADA ETF with the NYSE.
Cardano and Solana Price Levels
Both Cardano and Solana have had notable price movements following their late 2024 bull runs. ADA is consolidating after gaining over 200%, trading at $0.7798 at press time.
Support levels are at $0.75 and $0.70, while resistance lies at $0.85 and $1. A breakout above $0.85 could lead to further gains, whereas a drop below $0.75 may signal additional downside.
Solana has strong growth, increasing by 31.94%, but has faced retracement. Its key support levels are $85 and $78, with resistance at $105 and $115. A rebound from support may lead to bullish momentum, while failure to hold could lead to further corrections.
Technical indicators show the current consolidation phase. ADA’s RSI is at 43.57, below the neutral 50 mark, suggesting weak momentum. The MACD histogram is negative, indicating a weak recovery phase despite a bullish crossover. Similarly, Solana’s declining RSI suggests a cooling off period.
