Despite facing regulatory challenges and a wave of delistings, Solana (SOL) has showcased remarkable resilience and made a strong comeback in recent weeks.
Crypto has emerged as one of the top-performing digital assets, defying the odds and demonstrating its strength during a period of recovery.
At the time of writing on July 13, Solana was trading at $21.84, experiencing a minor 0.62% decline in the past 24 hours.
However, over the past 7 days, SOL has witnessed a notable rise of over 10%, making it the second-best performing crypto token on the weekly charts, closely trailing Compound (COMP).
The real highlight is Solana’s impressive monthly rally, surging over 40% and adding more than $1.8 billion in market cap. Year-to-date, SOL has capitalized on the broader market rebound, recording a surge of approximately 120%.
Solana’s surge can be attributed to heightened bullish activity over the past three weeks, as observed by market analyst Captain Faibik.
The cryptocurrency has broken out of a descending channel, indicating a potential shift in momentum. Moving above the previous downward trendline suggests that SOL’s price may start moving upwards instead of continuing the previous downtrend.
However, it’s important to note that increased bullish activity has also raised concerns about potential sell pressure.
Technical indicators such as the relative strength index (RSI) and money flow index (MFI) already suggest that SOL is being overbought, adding to the probability of a price correction.
