Solana jumped 40% in a month despite SEC action and delisting
Last month, Solana (SOL) and various other cryptocurrencies faced a wave of selling pressure following Securities and Exchange Commission (SEC) lawsuits against major exchanges Binance and Coinbase.
However, Solana has defied the odds and made an extraordinary comeback in recent weeks. Demonstrating resilience and strength, Solana has become one of the best performing digital assets during this period of recovery.Solana Price Analysis
At the time of publication on July 13, SOL was changing hands at $21.84, down 0.62% in the last 24 hours.
However, the crypto-token has gained more than 10% in the past 7 days, making it the second best performing crypto-token on the weekly charts after Compound (COMP).Solana's monthly rally is even more impressive, with the cryptocurrency up more than 40% and increasing its market capitalization by more than $1.8 billion over that period.
Since the beginning of the year, SOL has benefited from the broader market recovery along with other digital assets, rising about 120%.
Several other cryptocurrencies are also considered unregistered securities by the SEC, including Polygon (MATIC), Cardano (ADA), Sandbox (SAND), Flow (FLOW), and dozens of others.
While Solana's remarkable performance may continue, it would not be a surprise to see a correction in the near term in favor of the bears. This expectation is supported by overbought signals in key indicators such as RSI and MFI.
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Why Solana is gaining momentum?Solana's notable rebound came amidst a pronounced bullish activity over the past 3 weeks, pushing the cryptocurrency out of its downtrend channel, as emphasized by popular market analyst Captain Fybik .This suggests that the price has risen above the downtrend line that was previously holding it back. A breakout like this suggests a potential change in momentum, indicating that the SOL price may start to move upwards rather than continuing its previous downtrend.
On the other hand, the increased bullishness also increases the likelihood of selling pressure, as some technical indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) are already pointing to an overbought SOL.Why did Solana struggle last month?
As one of the largest altcoins, Solana fell significantly in value last month after a number of trading platforms such as Robinhood and eToro delisted the token.
The reason for this was the SEC's lawsuit against Binance and Coinbase, in which the regulator claimed that SOL was an unregistered security