SOL +12.83% Daily Gains Driven by Strong Momentum

On AUG 31 2025, SOL surged by 12.83% within 24 hours to reach $191.37, marking a continuation of its robust upward trajectory. Over the past seven days, the asset has appreciated by 362.5%, reflecting a sustained rally. Year-to-date, SOL has posted a staggering 1784.93% increase, while over the past 30 days, it has gained 721.04%. These figures underline a powerful market sentiment and strong bullish momentum.

Technical analysts have noted that SOL is exhibiting classic signs of a strong upward trend. The asset has maintained a steady increase in both volume and price, without significant pullbacks. The RSI and MACD indicators have moved into overbought territory, but this has not yet triggered a reversal. Instead, SOL has continued to consolidate above key moving averages, suggesting that the current bullish momentum is well supported by underlying technical conditions.

In the near term, analysts project that the current trend could persist as long as SOL remains above its 200-day moving average. A break above $200 would likely trigger additional buying pressure, potentially extending the upward movement into a broader consolidation phase. However, a pullback to key Fibonacci retracement levels could test the strength of the trend, offering a potential entry point for long-term investors.

Backtest Hypothesis

To evaluate the potential for continued success in assets like SOL, a well-defined event-driven backtesting approach can provide valuable insights. The strategy begins by identifying specific price surges based on clear, measurable criteria—such as a day-over-day close-to-close return of at least +5%. Once surge events are identified, the performance of the asset is tracked over predefined holding periods—commonly one, five, and twenty trading days. This method allows for a systematic evaluation of how prior surges have historically influenced future returns.

Applying this framework to SOL would involve analyzing the historical performance of the asset following similar bullish surges. By running the backtest from 2022-01-01 to 2025-08-31, the resulting data can help determine whether there is a statistically significant tendency for price continuation after a surge event. This could inform both short-term trading decisions and long-term investment strategies, especially in markets characterized by strong momentum.