Solana (SOL) has been on a downward trajectory for weeks, but a potential shift in momentum could be on the horizon. Crypto analyst Ali has highlighted a buy signal from the TD Sequential indicator on Solana’s 4-day chart, sparking discussions among traders about a possible price rebound.
Solana Price Action: Is the Downtrend Losing Steam?
At the time of writing, Solana is trading at $138.19, having continued to decline over the past few weeks. The cryptocurrency has been trending lower but is approaching a critical support zone between $135 and $140. This area has historically attracted buying interest, making it a key level for traders to watch.
Recent price movements suggest that sellers may be losing momentum. The latest candlestick formations indicate that while downward pressure persists, it is showing signs of weakening. The most recent bearish candle is smaller compared to previous ones, suggesting a potential exhaustion of the downward trend. If SOL can hold above this support level, there is potential for a rebound towards the $150–$160 range.
TD Sequential Indicator Signals Potential Reversal
One of the most significant signals currently catching traders’ attention is the TD Sequential indicator’s “9” buy signal on Solana’s 4-day chart. The TD Sequential is a widely-used technical tool that identifies trend exhaustion and possible reversal points. Historically, when this indicator flashes a “9” signal, it suggests that the asset may be nearing the end of its downtrend and could soon experience a price increase or at least a temporary relief rally.
For this bullish scenario to unfold, Solana’s price must remain above the $135 support level. If it does, an upward movement could be in play. However, confirmation is needed in the form of increased buying pressure and sustained trading volume. Without these factors, there remains a risk of further declines.
Key Support and Resistance Levels to Watch
- Support Level: $135–$140
- Immediate Resistance Level: $150
- Next Resistance Level: $160
If Solana holds its support and bounces back, traders will be looking at the $150–$160 range as the next key resistance zone. Breaking through this area could signal a stronger bullish reversal and potentially push the price toward higher levels.
However, if selling pressure continues and Solana fails to hold its current support, it could dip below $130, where stronger demand may emerge.
Market Sentiment and External Influences
While technical indicators like the TD Sequential provide valuable insights, Solana’s price trajectory will also be influenced by broader market conditions. Bitcoin’s movement, overall investor sentiment, and macroeconomic factors will play a crucial role in determining whether Solana can sustain an upward trajectory.
Ali’s tweet regarding the TD Sequential buy signal has already garnered attention from traders, many of whom monitor such signals to identify potential trade opportunities. However, the market remains cautious, and a sustained rally will require increased buying interest and favorable conditions in the broader crypto landscape.
Investor Sentiment: Will Bulls Step In?
Investors are closely watching Solana’s ability to maintain its current support levels. A strong defense of the $135–$140 zone could trigger a bullish reaction, pushing the price higher. On the other hand, if the support fails, further downside could be in store.
For now, the crypto community is keeping a close eye on how Solana reacts to this key technical signal. The next few days will be critical in determining whether SOL can break out of its downward pattern and reclaim bullish momentum.
