Solana (SOL) Secures Favor On Its Charts – Too Good to Last?

Solana’s network is now probably used to mishaps that appear to showcase occasionally. This week’s report shows hacking of SOL addresses. Nevertheless, examinations confirmed that it was an external exploit, not the blockchain’s fault. Fortunately, the event didn’t massively impact Solana’s price action.

While the recent incident didn’t catalyze panic selling, Solana still recorded some downside. SOL’s price lost nearly 16% from July end price areas. This retracement appeared to match the crypto industry’s performance during the same timeframe.

Some Fresh Air for Bulls

SOL recorded a 7% upsurge within the past two days, affirming that it has what it takes for health demand. The upward move emerged after the token’s price action nearly touched its ascending support level.

Meanwhile, SOL investors should embrace caution regardless of the recent surge. The latest upsurge comprised low buying volumes. And that explains SOL’s limited upside.

Furthermore, the downside pressure early this week dragged it beneath its 50% Relative Strength Index mark. That confirmed the feeble upside price channel that prevailed since Solana bottomed.

Surprisingly, Solana also displayed resilience in repelling the drop. The asset’s recent surge market is the 2nd time SOL has climbed without substantial interaction with its support level.

Investors could have perceived this as a bullish sign. That would authorize why Solana’s sentiment favored bulls within the previous two days. The sentiment shift appeared visible in the DyDx exchange and Binance finding rates.

SOL developers have remained somewhat active within the past two weeks (according to the development activity). That could also be another reason behind the slight improvement in investor confidence.

Nevertheless, a healthy network is a primary facet of investor attraction. And that means a platform with organic demand and massive activity.

Solana witnessed an impressive surge in non-fungible token trade volumes last month (July). Though the volumes declined substantially since mid-month, they kept health levels nevertheless.

Final Thought

Though SOL bulls currently dominate the space, the price will sooner or later escape the present channel. That would match re-shuffling the deck, meaning the near-term picture remains a toss-up.

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