$SOL

👉💥Solana recovers 40% from the lows: Is this momentum sustainable or just another bull trap?

Since April 7, when Solana marked a low of $95.26 per SOL, it has risen 40% to $132.77 per SOL by April 12.

Solana has seen similar movements in the past, only to fade afterward. A recent example is when President Donald Trump announced the idea of a Crypto Reserve, with Solana being part of it. Following that announcement, Solana recovered 40% before continuing its decline.

👉Solana Fundamentals

The fundamentals of Solana are based on its high-performance blockchain infrastructure, designed for speed and scalability. With its unique Proof of History consensus combined with Proof of Stake, Solana can handle thousands of transactions per second with low fees, making it attractive for developers building DeFi platforms, NFT markets, and real-time applications. Its ecosystem has grown rapidly, supported by a strong community of developers and increasing institutional interest.

👉What to Watch

Solana has great potential to be a widely used blockchain, but the current issue is that the volume driver has not come from sustainable value; it has largely been fueled by memecoins. This does not mean that Solana cannot trade at higher prices. In fact, Solana has seen a good bounce from the lows. However, until the overall fundamentals change, where on-chain volume is sustainable and not driven by a negative-sum game like memecoins, I would not expect Solana to make a move towards all-time highs in the short term.