Last month, Solana (SOL) and several other cryptocurrencies faced selling pressure due to SEC lawsuits against major exchanges.
However, Solana has defied the odds and experienced an impressive comeback, emerging as one of the top-performing digital assets during this recovery period.
At the time of writing, Solana is trading at $21.84, showing a minor decline of 0.62% in the past 24 hours. However, over the past 7 days, SOL has risen by more than 10%, making it the second-best performing crypto token on weekly charts, just after Compound (COMP).
Moreover, Solana has experienced a remarkable monthly rally, surging over 40% and adding over $1.8 billion in market cap during this period. Year-to-date, SOL has seen substantial growth of around 120%.
Solana’s impressive rebound can be attributed to pronounced bullish activity over the past three weeks. Market analyst Captain Faibik highlighted the breakout from a descending channel, indicating a potential shift in momentum.
This breakout suggests that SOL’s price might start moving upwards, breaking the previous downward trend.
However, it’s important to note that increased bullish activity also brings the possibility of sell pressure. Technical indicators such as the relative strength index (RSI) and money flow index (MFI) indicate that SOL is being overbought, which could lead to a potential correction in the near term.