- Solana project Solchat delivers impressive comeback after months of continuous downside.
- Massive marketcap inflows signal the potential start of a recovery rally.
Solchat, a Solana [SOL] ecosystem project is making headlines courtesy of its native token’s impressive performance. CHAT has been on a lengthy downward spiral but its recent performance indicates changing fortunes.
CHAT’s initial rally saw it peak at $21.28 in mid-March earlier this year. However, it has since been bearish, but the sell pressure appears to have slowed down in August, giving rise to a new all-time low of $0.459 on 5th August.
CHAT tanked by 97% from its peak to its recent lows.
The heavily discounted price action paved the way for robust accumulation this month. As a consequence, the bulls are back with vengeance, leading to an impressive rally.
CHAT pulled off an impressive performance in the last 7 days, during which it gained by 344% to a new local high of $2.77.
Source: TradingView
CHAT exchanged hands at $2.39 at press time which represents a bit of a pullback from the recent local high. The bulls encountered resistance at recent highs suggesting the possibility of a cool down.
The price was also extremely overbought at recent highs, which may give rise to more potential downside if profit-taking intensifies.
Can CHAT bulls maintain the rally?
An extended upside is possible if CHAT can attract more attention and accumulation. Its recent rally could potentially attract the spotlight to the Solchat project.
It is one of the Solana protocols that has a specific and interesting use case. It is the first decentralized, blockchain-based communication protocol on the Solana network.
The recent arrest of Telegram’s founder has underscored the need for censorship resistant communications protocols such as Solchat.
These factors, plus its unique first mover advantage as a decentralized chat platform on Solana highlights a unique selling point that may favor its long-term performance.
CHAT is still heavily discounted despite its recent rally. It is still a long way off from its historic ATH, hence the perception that it is still undervalued could play out in its favor.
Solchat gained roughly $15 million marketcap in the last few days, propelling it into the top 800 projects by marketcap.
Source: Coinmarketcap
CHAT was arguably one of the best performing cryptocurrencies in the last 7 days. Its ability to gain over $15 million marketcap in such a short period may signal the start of its recovery phase.
If that is so, then CHAT could be on the verge of an impressive rally in the coming months.
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