After the Federal Reserve decision, Solana memecoins like Fartcoin, Dogwifhat (WIF), Vine, and ai16z were some of the best-performing tokens.
Fartcoin token surged to a high of $1.1565 on Wednesday, up almost 50% from its lowest level this week.
Similarly, WIF jumped to $1.3695, up modestly from its lowest point this week. Ai16z, the biggest AI agent coin on Solana and Vine, jumped by over 20%.
While these gains are strong, these tokens remain in a deep bear market after falling by double-digits from their highest levels this month.
Why Solana Memecoins Rebounded
Solana memecoins often perform well when Bitcoin and SOL are rising. This recent rebound occurred as the Solana price stabilized after crashing to $223 earlier this week, moving up to the psychological level of $240. Meanwhile, Bitcoin approached the significant mark of $105,000.
These memecoins also rose after the Federal Reserve delivered its first interest rate decision of the year. In it, the bank left interest rates unchanged, as expected. It also maintained the view that the American economy was doing well, with the labor market stabilizing.
The most notable statement was from Jerome Powell, who noted that American banks could perfectly serve crypto customers. Historically, many mainstream banks avoided the industry for its opaqueness and lack of regulations. As a result, many firms moved to Signature Bank, which collapsed in 2023.
Still, there is a risk that the ongoing Fartcoin, ai16z, WIF, and VINE rebounds are part of the dead cat bounce (DCB). A DCB is a situation where an asset is in a freefall, stages a brief rebound, and resumes the downtrend. These situations are highly common during bear markets.
The memecoins’ rebound will be sustained as long as Bitcoin price maintains its momentum and potentially moves above its double-top at $108,200. This move will lead to more gains, potentially reaching a record high of $110,000.
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