Solana ($SOL), the smart contract platform, has been demonstrating remarkable performance, outpacing the broader cryptocurrency market. Recently, it successfully breached the $41 price level, fueled by increasing interest from institutional investors. Over the last 30 days, SOL has surged by an impressive 70%.
As of the current moment, SOL is trading at $41.04, reflecting a year-to-date increase of over 270%. This surge in value represents a recovery from the setback it faced following the collapse of FTX, a significant cryptocurrency exchange.
The demise of FTX had a negative impact on Solana's price, as the former CEO, Bankman-Fried, was a well-known supporter of Solana and had invested in various projects within the Solana ecosystem. This association eroded investor confidence, causing SOL to plummet to as low as $11 before embarking on its recovery trajectory. Its consistent price performance has been instrumental in attracting institutional investors.
According to the latest report from CCData's Digital Asset Management Review, investment products based on Solana witnessed a substantial increase in assets under management, surging by 74.1% in October to reach $140 million.
Today's price surge is consistent with the relative strength index (RSI), which has crossed the 74.00 threshold and currently stands at 77. The RSI, a momentum indicator employed in technical analysis, assesses recent price changes to determine overbought or oversold conditions in the price of an asset.
The RSI scale ranges from 0 to 100, with values above 70 suggesting that an asset is becoming overbought or overvalued, while values below 30 indicate that an asset is becoming oversold or undervalued, according to Investopedia.
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